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


Aldi Nord and Aldi Süd collaborate for animal welfare

18/01/2018

Aldi Nord and Aldi Süd will join forces for a unique collaboration: they will launch their own animal welfare quality mark. “Fair & Gut” (Fair and Good) will launch in Germany for poultry products, but steadily expand.

Rewe uses chocolate pudding to see how little sugar is acceptable

18/01/2018

German supermarket chain Rewe has asked its customers how little sugar they can bear. It aims to lower its private label’s sugar levels, but the consumer will decide by how much.

Lidl dials down its American ambitions

18/01/2018

Lidl had hoped to have about a hundred stores in the United States by the summer, but will be forced to adjust its first-year goals. The German chain currently has 49 stores in the United States.

Carrefour looks back on difficult year

17/01/2018

Despite a fourth quarter improvement, French Carrefour has been through a very difficult year. Next week, CEO Alexandre Bompard is expected to set out new guidelines in order to give the retail giant's results a new push.

British supermarket chain Iceland gives plastic the boot

17/01/2018

British frozen food chain Iceland will be the first supermarket chain to cut all plastic packages from its private labels. By 2023, each of its 1,400 private label products will have more sustainable packaging, like cardboard and paper, alternatives to plastic.

AB InBev sells two German beers

17/01/2018

AB InBev has sold German beer brands Diebels and Hasseröder, alongside its breweries, to investment fund CKCF. The new owner wants to invest more in the two beer brands.

Back to top