ABF states that it will increase food costs in inflation pressure.
Food, sugar, agricultural, raw materials, and groups that own retailers Primark states that rising costs have affected profits.
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“In the food, sugar, ingredients, and agricultural businesses, we have seen the cost of energy, logistics, and product costs,” ABF stated in a statement.
“We are implementing a plan to offset these through the implementation of operational costs and the implementation of price rise as needed. It is expected to increase operating profit adjusted with sugar. Completely recovered. Although it is the stage of the cost, we are hoping to reduce the operating margin of food and ingredients in six months due to the recovery of these margins by the end of the fiscal year.
In PRIMARK, sales are still lower than before pandemic. ABF suggests reducing 400 roles to simplify store management.
“The impact of inflation pressure on the raw materials and supply chains in this first quarter has been widely alleviated by US dollar exchange rates, store operating costs, and overhead reductions compared to last year.”
“We propose to simplify the Retail Structure in the UK in the store as part of a continuous program to improve the efficiency of the store retail business.”
