Primark owner Associated British foods said it expected “significant progress” in the current year as it reported a rise in annual profits but warned that food prices may have to rise due to increasing costs.
The company reported a 6% rise in pre-tax profit to £725m and declared a special dividend of 13.8p a share. Revenue was flat at £13.8bn.
“We are seeing significant cost increases in energy, logistics and commodities in addition to the impact of widely reported port congestion and road freight limitations. Our businesses are working to offset the impact of these through cost savings. Where necessary, our food businesses will also implement price increases,” the company said on Tuesday.
The company said it expected its Primark to deliver improved margins and profit after it was previously hit by store closures during the Covid-19 pandemic.
