Primark warns of price rises despite strong recovery in sales
Associated British Foods, owners of Primark, today confirmed that "selective price increases" will occur across some of its autumn/winter stock, despite the company seeing strong recovery in sales for the 24 weeks to 5 March 2022.
- Primark sales were up 59% to £3.54 billion, with an adjusted operating profit margin of 11.7%
- UK and Ireland saw a strong sales recovery with increased holiday travel and socialising
- Primark also began its digital transformation in the UK, launching a new stock checking website
ABF also reported that despite positive recovery in the UK, consumer footfall had remained weak across continental Europe.
George Weston, Chief Executive of Associated British Foods, said: “This half year sales and operating profit for the Group returned to pre-COVID levels. Our people have responded well to the many challenges we faced. Measures to mitigate higher costs in all our businesses have been taken and more are planned. Primark delivered a significant increase in sales and profit, with stores now open and trading largely free of restrictions.
“Looking further ahead, inflationary pressures are such that we are unable to offset them all with cost savings, and so Primark will implement selective price increases across some of the autumn/winter stock. However, we are committed to ensuring our price leadership and everyday affordability, especially in this environment of greater economic uncertainty. Notwithstanding the inflationary pressures we are experiencing, our outlook for the year is for significant progress in adjusted operating profit and adjusted earnings per share for the Group.”
