Primark Owner AB Foods Raises Guidance as Consumers Swallow Price Rises

Associated British Foods Plc raised its outlook for the full year as consumers battling a cost-of-living crisis manage to absorb higher prices for food, ingredients and clothing.

AB Foods said Monday it’s benefiting from strong sales in its grocery and ingredients business where it has increased prices to offset inflation, while its fashion chain Primark lured customers with summer styles and new stores. The overall group, which also owns a large sugar division, now expects profit to be moderately ahead of last year, up from previous flat guidance. The shares were largely flat in early trading in London.