Penneys owner AB Foods posts strong rise in profit and launches new buyback

Retailers had a difficult summer when washout weather in the UK and Ireland affected purchases

AB Foods’ grocery business, which recorded a 14% jump in adjusted operating profit last year, is expected to benefit from easing input cost inflation this year. Photo: Gareth Chaney/Collins

Associated British (AB) Foods annual profit jumped with momentum at its Primark clothing chain and food division expected to continue this fiscal year, helped by easing input costs.

The conglomerate, which also has large sugar, agriculture and ingredient arms, said pretax profit rose 43% to £1.9bn (€1.7bn) in the year to September 14. The uplift was driven by a strong recovery in profit at Primark, which had to endure a difficult few years during the pandemic, a “return to normality” in many of its markets and easing supply chain problems.