AB Foods backs outlook after "encouraging" start to 2023 Primark trading

By Scott Kanowsky 

Investing.com -- Associated British Foods PLC (LON:ABF) has confirmed its 2023 financial guidance, citing an "encouraging" start to trading at its key Primark division despite lingering inflation pressures.

In a statement ahead of its annual general meeting on Friday, Chairman Michael McLintock said the group expects to report "significant growth in sales" during the period.

However, adjusted operating profit and adjusted earnings per share are forecast to be lower than the prior year. In November, AB Foods posted a sharp uptick in income in the 52-week timeframe ended on September 17 even though it was hit by a large one-time charge stemming from issues at its operations in Germany.

McLintock added that the company predicts it will see further increases in input costs, although the volatility in these expenses has "diminished."

Primark is on track to open 27 new stores in its current financial year, with ten of those coming in the run-up to the Christmas holidays, according to McLintock.

Aggregate profit at the firm's food businesses is also anticipated to grow on a year-on-year basis.

London-listed shares in AB Foods edged slightly lower in early dealmaking.