It said lower material and freight costs should result in a "substantial recovery" in Primark's gross margin and overall it expects Primark's adjusted operating profit margin to recover strongly from the 8.2% made in 2022/23.
"At this early stage we believe that the adjusted operating profit margin will be above 10% with further improvement dependent on levels of consumer demand," it said.
For the year to Sept. 16, 2023, it made an adjusted operating profit, its key profit measure, of 1.51 billion pounds ($1.86 billion), up from the 1.44 billion pounds made in 2021/22.
Primark's adjusted operating profit fell 3% to 735 million pounds.
The group announced an additional share buy back of 500 million pounds after concluding a programme of the same amount last month.
Persons:
James Davey, Sarah Young, Miral
Organizations:
British Foods, Foods, Revenue, Thomson