Discount retailer Primark has turned in another strong performance for owner Associated British Foods, despite harsh competition on the high street, which has pushed down prices.
In the 24 weeks to March 5, Primark saw sales increase by 12 per cent of £448m, up from £399m a year ago, with operating profit up to £59m from £50m. Associated said the chain’s ‘excellent performance’ was driven by a 6 per cent increase in like-for-like sales, as well as an increase in selling space. Like-for-like value growth was achieved against a background of 5 per cent price deflation.
Three new stores opened in the period in Lincoln, Sunderland and Dundrum, with two smaller stores closed. Stores in Watford, as well as Drogheda and Cork in Ireland, where the group trades as Penney’s, were extended. completed. The programme of new store openings includes plans to rebrand the recently acquired Allders stores.
Associated reported total group sales up 10 per cent to £2,618m, with a good performance by its food brands business, which includes Sliver Spopon, Twinings and Ovaltine
George Weston, chief executive, said:”These results reflect the strong contribution from recent acquisitions and good progress from our existing businesses. The integration of the acquisitions is virtually complete and these businesses are performing in line with our expectations.”
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