Primark expects 'further significant input cost inflation'
Associated British Foods, the parent company of Primark, has this morning issued a trading update ahead of its annual general meeting later today, 9 December 2022.
Associated British Foods Chairman, Michael McLintock, will tell the business group: "Our outlook for the full year is unchanged. We continue to expect further significant input cost inflation, but the volatility of our input costs has diminished.
"At this early stage, Primark trading in this financial year has been encouraging. We are on track to open 27 new stores this financial year, ten of these opening in the run-up to Christmas, and to date we have opened six new stores, including one today in Angers, France. 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."
Last month, Primark reported that revenue jumped by more than a fifth to £17 billion in the year to 17 September 2022, as pre-tax profit increased by nearly half to £1.1 billion.
Primark has also committed to making a number of investments in retail over the next five years. The company expects to reach 60 US stores by the end of 2026, and 530 stores by 2026 globally.
Primark is investing €100 million to strengthen its store portfolio in Spain, with plans to open at least eight new stores over the next two years. The business also pledged a £140 million investment in UK retail over the next two years, which includes the opening of four new stores across the UK.