Primark posts uplift in full year profit
Primark owner Associated British Foods has reported that sales at the fashion retailer climbed by 4.2% in the year to 14 September.
The uplift was driven by an increase in selling space.
Like for-like sales were down 2% but operating profit margin increased to 11.7% from 11.3% in the period. This resulted in adjusted operating profit being 8% ahead of the previous year.
Primark’s UK stores increased their sales by 2.5% but like-for-like sales edged down 1%. The company said it has been encouraged by customers’ reaction to its relocated store in Birmingham which includes new food and beverage and beauty service offerings.
Sales in the Eurozone were 4.8% ahead of last year at constant currency following strong sales growth in Spain and France. However, like-for-like sales fell by 2.9% driven by a weak performance in Germany. Full year like-for-like sales growth was achieved in Spain, Portugal, France and Italy.
ABF said its US business delivered strong sales growth which, combined with lower operating costs, meant the business significantly reduced its operating loss.
During the year ABF opened four new stores in the UK, three in Germany, two in Spain, two in France and one each in Belgium, the Netherlands and Slovenia.
