For retailers selling non-essentials, the next 12 months is going to be about damage limitation. Investors already know that Associated British Foods, the owner of Primark, the budget clothing and homewares chain, has a slim chance of avoiding a decline in profits. The real question is whether the slide will be worse than expected.
Revenue should be ahead over the 12 months to the end of September next year, on the back of higher prices at Primark and in its food-related businesses. There is enough cash at the balance sheet to fund £500 million in share buybacks.
Cost inflation is the problem, with higher energy and wage bills expected to push profits behind the £1.44 billion adjusted operating profit of last year and probably
