Primark gives ABF a happy Mother's Day | RetailDetail

Primark gives ABF a happy Mother's Day

Primark gives ABF a happy Mother's Day

British retail and food concern Associated British Foods (ABF) had a rise in profits over the past six months of no less than twenty percent to 496 million pound (over 580 million euro), exceeding analysts' predictions. Clothing chain Primark was a big contributor to the good results of its parent company.

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.

Questions or comments? Please feel free to contact the editors


Ahold Delhaize launches digital lab in the United States

22/05/2018

Ahold Delhaize’s American division will found a new company focused on digital innovation: Peapod Digital Labs will become a lab for new digital, eCommerce and personalization strategies. 

Carrefour forced to shut down hundreds of Dia stores

22/05/2018

Carrefour has not found a buyer for hundreds of its former Dia stores in France yet. That may force nearly 230 stores to shut down.

Carrefour and Tencent launch high-tech store in Shanghai

22/05/2018

The recently launched ‘Le Marché’ store formula, a first collaboration between Carrefour and Tencent, allows customers to pay with face recognition at unmanned checkouts.

Hoegaarden moves part of production to Vietnam and China

18/05/2018

Hoegaarden experiences strong growth in Asia, but is losing ground in Europe. That is why AB InBev will move part of the production to China and Vietnam: the brewery in Hoegaarden will lower cut its production days by 2 a week.

Holland & Barrett wants vegan stores

17/05/2018

British health chain Holland & Barrett (previously known in the Benelux as Essenza) plans to open completely vegan stores, a trend the chain needs to follow according to CEO Peter Aldis.

Nestlé on a diet: cuts back sugar, fat and salt levels

17/05/2018

Nestlé wants to lower its sugar, salt and fat levels to play into the global demand for healthier food.