In a packed morning of fmcg and retail coverage, the papers report varying coverage of Associated British Foods latest annual results.
Primark’s owner is expecting to take a combined hit from inflation of £2bn this year and next as it warned a weak consumer backdrop would also pose a challenge in the coming months (The Guardian).
Primark is taking the fight to its competitors with a vow to not raise prices further as customers struggle with the spiralling cost of living (Daily Mail).
The owner of fast-fashion retailer Primark, Ovaltine and Twinings has announced its first share buyback (The Times £). Associated British Foods’s £500m distribution to shareholders, along with a rise in the dividend, came as the group posted a jump in annual profits and revenues.
Associated British Foods has revealed a £500m share buyback programme following an exceptionally strong recovery in trade at Primark stores (Daily Mail).
Primark is struggling to restore sales across Europe to pre-Covid levels as it warned of soaring inflation in the year ahead (Financial Times £). The discount fashion chain’s performance in Europe outside the UK and Ireland has been stubbornly slow to recover, with same-store sales in the year to 17 September down 16% on 2019 levels.
Primark is considering shutting stores in Germany as it struggles to attract shoppers in the same numbers as prior to the pandemic (Telegraph).
The Lex column in Financial Times (£) examines Primark’s troubles in Germany after it announced a £200m writedown in the country.
The UK has lost 40% of its free-range turkey flock to bird flu and the resulting culls, leaving some high-end butchers without supplies and adding to pressures on the market over the key Christmas period (Financial Times £).
Britain’s farmers are struggling to meet demand for eggs as production has been hit by the avian flu epidemic, soaring costs and suppliers leaving the industry (The Times £).
A third of farmers surveyed in recent days by the trade body the British Free Range Egg Producers Association reported they had reduced the number of hens in their flock because egg prices meant they were unable to cover their costs (The Guardian).
“Unprecedented” inflationary pressure in its British seafood business and a turbulent wider economic environment have forced Hilton Food Group to warn that its full-year operating profits will be below expectations (The Times £).
Shares in Hilton Food Group endured one of their worst days on the stock market after the company warned ‘unprecedented’ cost increases had hit profits (The Mail).
UK grocery prices rose at their fastest pace in 14 years in October, pointing to a further increase in the overall inflation rate this month when fresh data are released, according to a survey (Financial Times £).
Grocery price inflation hit a record high of 14.7% last month, to add a potential £682 to the typical annual cost of food shopping (The Times £).
British shoppers are making a big switch to budget ranges and discount chains as supermarket inflation reached a record high of nearly 15% last month, driving up the average annual bill by £682 a year (The Guardian).
Shoppers are waiting longer before stocking up on Christmas food as grocery prices surge to a fresh 14-year high, adding £682 to the average annual supermarket bill (Telegraph).
Waitrose is facing a Christmas nightmare as it haemorrhages shoppers to rival supermarkets such as Sainsbury’s and Marks & Spencer (Daily Mail).
Aldi and Lidl are unstoppable in budget Britain, writes the Telegraph. “The German discounters are providing a vital service as the cost of living rises.”
Food labels showing how much exercise is needed to burn off calories do not help tackle obesity, research suggests (The Times £).
Coca-Cola HBC has upped its profit forecasts after a strong summer with the drinks bottler expecting stable demand despite the cost of living crisis (Daily Mail).
The Coca-Cola bottler that covers Russia and Ukraine lifted its full-year profit forecast yesterday after price rises failed to dent demand (The Times £).
A rebound in in-person shopping and demand from retailers for new space has given a boost to struggling mall landlord Hammerson, pushing shares in the company up by almost 10% (Financial Times £).
Profits at one of Britain’s biggest retail landlords are set to be bigger than most City analysts had expected this year, as sales rebound and as customers return to its shopping centres (The Times £).
King Charles revealed his tips for a perfect Sunday roast when he visited the Bradford headquarters of the supermarket chain Morrisons (The Times £).
Deutsche Post DHL has raised its full-year profit guidance, saying it is on track to produce record results (Financial Times £).
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