Future Of British Business

Primark Owner Plans £500 Million Buyback Amid Falling Profit

  • Associated British Foods expects lower profit this year
  • Pledges not to push up Primark prices again despite inflation

AB Foods warned in September that profits would fall.

Photographer: Anthony Devlin/Bloomberg
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The owner of the Primark budget fashion chain unveiled its first ever share buyback, a £500 million ($574 million) program, and warned of “substantial and volatile” cost inflation in the current fiscal year.

Associated British Foods Plc, which also owns sugar, agriculture and ingredients divisions, said it will buy backBloomberg Terminal the shares this financial year. It raised the dividend by 8%.