Monday, January 30, 2023
HomeStockPrimark cautious on 2023 outlook after 'very sturdy' Christmas By Reuters

Primark cautious on 2023 outlook after ‘very sturdy’ Christmas By Reuters


© Reuters. A Primark retailer is seen on Oxford Road, in London, Britain, January 16, 2023. REUTERS/Peter Nicholls

LONDON (Reuters) -Clothes retailer Primark reported better-than-expected buying and selling over the Christmas quarter, father or mother Related British Meals (OTC:) mentioned on Tuesday, however cautioned financial headwinds might dent client spending in 2023.

The group mentioned Primark’s income was 3.15 billion kilos ($3.91 billion) within the 16 weeks to Jan. 7, up 15% on a continuing forex foundation because it benefited from “very sturdy” buying and selling within the run-up to Christmas.

Final week, official UK information confirmed inflation-pinched customers reduce their purchasing by probably the most in December in not less than 25 years, however some retailers exceeded expectations, together with these aimed on the worth finish of the market.

AB Meals (LON:) mentioned client spending had confirmed extra resilient within the quarter than anticipated in the beginning of its monetary yr.

“Up to now, Primark buying and selling has been good in all our markets and was forward of expectation,” it mentioned.

“Early buying and selling on this new calendar yr has been encouraging however macro-economic headwinds stay and should weigh on client spending within the months forward.”

Final September, Primark mentioned it had determined to restrict additional value will increase in 2022-23 past these already deliberate, searching for to keep up its worth credentials amongst customers.

AB Meals, which additionally owns main sugar, grocery, agriculture and elements companies, mentioned its complete income was 6.7 billion kilos over the 16 weeks, up 16%.

The group, whose shares have fallen 8% during the last yr however are up 18% during the last month, maintained its steering for “vital progress” in gross sales in 2022-23 however with adjusted working revenue decrease than the 1.44 billion kilos made in 2021-22.

It mentioned it continued to come across vital value pressures however inflation had turn into much less risky and lately some commodity prices had declined.

Gross sales within the group’s grocery enterprise, which incorporates Twinings tea, Jordans cereals and Ovaltine drinks, rose 9% to 1.39 billion kilos over the 16 weeks.

The group mentioned the total yr working outcome at AB Sugar was now anticipated to be broadly in keeping with the earlier yr on account of a much-reduced UK sugar crop.

($1 = 0.8063 kilos)

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