Total sales for the company are up by an astonishing 16% to £4.95 billion. The owner of Primark the Associated British Food believes these results are due to an increase in like-for like sales growth of 4% as well as an increase in retail selling space.
ABF chief executive George Weston said: “Primark’s trading success and significant expansion delivered another magnificent year.”
Profits have risen by 30% to £662 million for the discount clothing retailer. In its full-year results published today, Associated British Foods announced that the performances of both its fashion and grocery sectors were hugely successful as opposed to a not so sweet lower price result in its sugar business. Despite this ABF produced a brilliant profit growth of 6%.
ABF predicted earlier this year that their sugar division profits would be “significantly lower” due to failing sugar prices in Europe and lower sales in China. Subsequently falling EU sugar prices has resulted in a lack of profit growth.
The results statement said: “This excellent result was driven by an increase in retail selling space, like-for-like sales growth of 4%, and superior sales densities in the new stores.”
Since there is a strong demand and success for Primark in Europe, the encouraging results have prompted the company to open its first US stores. Currently Primark operates in nine countries.
ABF chairman Charles Sinclair said, “We recently announced that the next new market would be in the north-east of the US, with the first stores expected to open late in 2015 and with up to 10 stores by the end of 2016.”
Trading with a conscious – Perhaps the retailer has earned credibility after a continued compensation contribution of around £7.5 million to the families and workers of the dead, following the collapse of the Rana Plaza factory in Bangladesh last year. Following many public criticisms over the years of their ethical trading, Primark’s ‘Our Ethics’ page on their website display how much the company is now doing to improve working and employment conditions for all Primark locations.
Chief executive George Weston said: “Looking ahead to the next few years we see excellent prospects for Primark.”