Primark, the retail division of Associated British Foods, has seen its sales rise 13% to £5.3 billion (at constant exchange rates), for the year to 12 September 2015.
Sales growth at the division was boosted by a 9% increase in selling space, around one million square feet in total. The retailer has expanded in Germany, Belgium, the Netherlands and, most notably, the US in the past year.
Rebecca Marks, Consultant at Conlumino said that Primark's performance demonstrates its "continuing dominant lead in the value clothing retail market. Over the year, however, the retailer was unable to escape the effects of currency volatility, reducing its total sales at actual exchange rates to +8%.
"While these results are in line with the expectations outlined in September this year, they are compounded by Primark’s 2% increase in operating profit to £673 million at actual exchange rates – modest compared to growth of 5% at constant exchange rates."
Overall, ABF posted group revenue of £12.8 billion, although its sugar division was impacted by commodity price fluctuations.
"We delivered a strong operational performance despite the challenges of food commodity deflation and big movements in exchange rates," said George Weston, Chief Executive of Associated British Foods. "The group continues to generate strong cash flows and to reduce net debt. While marginally down, our earnings per share result underlines the group’s strength."
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.