Primark sales up 15%
Primark owner Associated British Foods has said that the fashion retailers first half sales increased by 15% driven by an increase in retail selling space and very high sales densities in stores opened during the last 12 months.
Like-for-like sales for the business were level with last year after being held back by unseasonably warm autumn weather across northern Europe and the impact of new store openings in the Netherlands and Germany on existing stores in the region.
ABF said Primark’s operating profit rose to £322 million from £298 million in the same period in the previous year.
However, pre-tax profit across the wider ABF group fell by 51% to £213 million following losses in its sugar and biofuel businesses.
ABF chief executive Geoge Weston said: "This is a sound trading result with significant progress made in operating profit by Primark, agriculture and ingredients, and further improvement in grocery's margin.
“As expected, profitability at AB Sugar was substantially lower as a result of much weaker EU sugar prices.
“Primark's performance was driven by significant expansion of selling space and superiortrading by the stores opened in the last 12 months and plans for its entry into the north-east of the US are well advanced."
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