It had previously expected adjusted operating profit and adjusted EPS to be below the 1.43 billion pounds ($1.71 billion) and 131.1 pence, respectively, that it reported for the year ended Sept. 17.

The company said it has continued to face significant cost pressures, but that consumer spending has proven to be more resilient.

“In the second half the recovery of significant inflation in our input costs remains a management priority but inflation has become less volatile and recently some commodity costs have declined. Macro-economic headwinds for the consumer remain and may weigh on spending in the months ahead,” it added.

The British conglomerate expects sales for the first half to be 20% above the same period last year at actual exchange rates while adjusted operating profit is anticipated to be broadly in line.

Primark’s total sales for the same period are anticipated to rise 19% to GBP4.2 billion, and adjusted operating profit margin is now expected to be above 8%.

Regarding the food businesses, AB Foods expects both aggregate sales and aggregate adjusted operating profit to be well above fiscal 2022 levels, albeit at a lower margin.

However, grocery division’s adjusted operating profit is forecast to be slightly lower than last year, with inflation continuing to offset pricing and cost control.

Write to Michael Susin at [email protected]