Now expects 202223 profit in line with 202122
First half group sales up 16
Primark39;s first half sales up 16
Reaction to springsummer ranges very positive

LONDON, Feb 27 Reuters Primark owner Associated British Foods on Monday raised its financial guidance for full year 202223, saying consumer spending had proven to be more resilient than it expected.

The group said Primark had traded well ahead of expectations, with sales in the first half to March 4 expected to be 4.2 billion pounds 5.0 billion, up 16 at constant currency, with adjusted operating profit margin now expected to be above 8.

Our proposition of great quality at affordable prices and attractive store experience is proving increasingly appealing to both existing and new customers, it said, noting early reaction to its spring and summer ranges has been very positive.

Last September, Primark said it had decided to limit further price increases in 202223 beyond those already planned, seeking to maintain its value credentials among consumers.

The group, which also owns major sugar, grocery, agriculture and ingredients businesses, said total first half sales were expected be more than 16 ahead of the previous year at constant currency, with adjusted operating profit broadly in line with the previous year.

It said its food businesses, including grocery brands Twinings tea, Jordans cereals and Ovaltine drinks, continued to seek to recover inflation through cost mitigation and price increases.

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