Primark profits jump as bargain-hunters drive sales
Primark has notched up a surge in half-year profits as British shoppers continue to flock to the value fashion retailer.
The firm, owned by Associated British Foods, saw adjusted operating profit jump 25% to £426m in the six months to 2 March, while sales grew 4% to £3.6bn.
Like-for-like sales fell 1.5% overall but profit margins were “much higher”, ABF said. In the UK, sales were up 2.3%, and comparable sales grew 0.6%.
The firm said its share of the clothing, footwear and accessories market in the UK increased substantially in the period, bucking the trend of wider high street malaise.
Primark, which does not have an online offering (however it is reported to be planning an online Click & Collect service), recently opened a new megastore in Birmingham to much fanfare.
The strong Primark performance helped ABF record a 2% rise in turnover to £7.5b, although pre-tax profit was dragged down by a £79m exceptional charge linked to pensions and its bread-making arm.
Pre-tax profit came in 15% lower at £515m in the period.
