AB Foods says input cost volatility has diminished

Associated British Foods maintained full-year guidance on Friday, saying it continued to expect further significant input cost inflation, but the volatility of input costs had diminished.

“We continue to expect the aggregate profit of our food businesses to be ahead of our last financial year,” the Primark owner said ahead of its annual general meeting.

“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,” said chairman Michael McLintock.

“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."

Reporting by Frank Prenesti for Sharecast.com