55% rise in profit and 7% comparable sales
growth
Primark succeeded in boosting operational
profits of the first half of the financial year by 55% to 238 million pound
(almost 280 million euro). The chain once again has overcome the rising price of
cotton and the economic crisis, two factors that normally stunt profit growth
significantly.
Sales of Primark stores that have been
operation for over a year, grew 7% in the first six months of the
financial year, while sales margin rose from 2.4% to 11.9%,
predominantly because of lower cotton prices and a weaker dollar.
Since the start of this year cotton prices are
on the rise though and the enduring cold weather in the first months of 2013
also sent some shivers down the spine of Primark, but apparently nothing too
bad.
Groceries division also positive
The great performances of Primark and the rise
of profits of 29% in the groceries division of AFB succeeded in compensating
the drop of profit by 5% in the sugar department.
Company sales rose by 10% to 6.33 billion pound
(over 7 billion euro). Associated British Foods is expecting a positive
evolution for the entire financial year of 2012-2013. After announcing the good
results, the share of AFB skyrocketed.
Primark wants to conquer Paris
France is one of the factors that have to
ensure a good second half of the year: Primark wants to get a foothold in
Paris. “We will open a couple, not in flagship locations, and we will learn. We
will learn about reception, difference in mix, trading hours etc, and then we
will take it from there”, said CEO of ABF George Weston.
At the moment Primark has locations in Ireland,
the United Kingdom, Germany, Austria, Portugal, Spain, Belgium and the
Netherlands. The Irish chain was founded in 1969 and currently has 257 locations.
