Primark owner Associated British Foods (ABF) has said its food business will fair better this year than the last, as it faces the UK’s economic downturn with low-cost offerings.
At its annual general meeting today, chairman, Michael McLintock is expected to keep the group’s full year outlook unchanged, as many businesses in the country nudge them downward.
“We continue to expect further significant input cost inflation, but the volatility of our input costs has diminished,” he said in an investor update this morning.
“We continue to expect the aggregate profit of our food businesses to be ahead of our last financial year.”
The food group, which owns Asian convenience brand Blue Dragon, is anticipated to benefit from an uplift in consumers dining at home, as household budgets are squeezed with rising inflation.
The group also owns products which are considered to be essential for many British households, including tea brand Twinings, bakery label Kingsmill as well as sugar makers Silver Spoon and Billingtons.
Budget retailer Primark is also on track to open 27 new stores following an “encouraging” financial year, McLintock added, with 10 being unveiled before Christmas.
“For the full year, we continue to expect significant growth in sales for the group, and adjusted operating profit and adjusted earnings per share to be lower than the previous financial year,” he said.