Associated British Foods, owner of brands like Twinings, Patak’s and Kingsmill and clothing chain Primark, said it continues to expect significant progress, at both the half and full year, in adjusted operating profit and adjusted earnings per share for the group.
Providing a trading update today at its annual general meeting, the group chairman Michael McLintock, however, noted that the business is experiencing the impact of port congestion and driver shortages, leading to higher costs.
“We have seen an escalation in the cost of energy, logistics and commodities and we have been implementing plans to offset these through operational cost savings and, where necessary, the implementation of price increases,” McLintock added.
The company said the trading in the new financial year across its grocery, sugar, ingredients and agriculture has been in line with expectations, and ahead at Primark with improved like-for-like sales compared to the fourth quarter of the last financial year.
Last month, the company reported statutory operating profit of £808m for its 2021 financial year, broadly in line with the £810m in the previous year. Combined revenue was up 5 per cent and adjusted operating profit up 10 per cent to £760m, with strong international growth for grocery.
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