Strong performance at Primark boost ABF
A strong performance at discount clothing retailer Primark has boosted parent group, Associated British Foods (ABF), which today reported an 8% rise in sales in the past six months.
According to ABF, like-for-like sales at its 196-strong Primark chain, which strip out the impact of new stores, were boosted by “exceptionally strong performance” from the relatively new 14 Spanish stores.
Retailers such as Primark have been thriving during the recession and have been luring shoppers away from the more expensive retailers.
Meanwhile, overall sales were strong after the chain opened five new stores in the UK, Germany, Portugal and Belgium.
ABF, which also owns brands such as Twinings Tea, Ovaltine drinks, Ryvita and Kingsmill, said it also posted a strong performance at its Silver Spoon sugar business.
It said profits from sugar will be considerably ahead of last year, fuelled by a strong performance in Europe and a “welcome recovery in China”.
Finance Director, John Bason, said: “Primark’s momentum is improving, it’s an amazing performance especially since January and February were hit by terrible weather in the UK and the current retail environment.”
Meanwhile, Primark continues its expansion programme with a further six new stores in the second half of the year – three each in Britain and Spain.
Furthermore, it has acquired 10 Bhs stores in Britain to be refurbished and opened in its next financial year.