Associated British Foods warned of lower profit next year, as its Primark fashion business struggles with rising costs and surging inflation hammers the disposable incomes of British consumers.
ABF said soaring energy bills and its decision to limit further price hikes would hurt fashion chain Primark and its margins next year.
British consumers have been tightening their purse strings with inflation surpassing 10% in July. The rising costs of everything from food to fuel show no sign of abating.
ABF said it would consider in November whether or not it had surplus cash to return to shareholders this year.
The company retained its outlook for the current year ending Sept. 17, with its food business seeing stronger revenue due to higher demand and prices of ingredients.
