Fashion retailer Primark has reported an 8% increase in operating profits to £913m, for the year ended 14 September 2019.
The fashion chain also saw a 4.2% increase in year-on-year sales to £7.79b, and Primark’s owner ABF hailed the year of “resilient performance” from the high street retailer.
Despite like-for-like sales slipping by 2%, ABF said that profit growth has been driven by site expansion, with 14 new stores across the UK and Europe, as well as the opening of its largest ever unit in Birmingham.
ABF has nodded to “further international expansion in the coming year”, with the announcement of 19 new Primark stores across the UK and in Europe in 2020.
Michael McClintock, chairman of ABF, said: “Primark will continue to expand its selling space next year, with the most stores being added in France and Spain. Looking further ahead, Primark has a strong pipeline of good quality sites.”
ABF saw an overall growth of pre-tax profit by 2%, whilst operating profit increased 1% to £1.42b.
George Weston, chief executive of ABF, said: “The group delivered a resilient performance this year, with strong profit growth from grocery and Primark, which more than offset the profit decline in sugar.”
He added: “We continued to pursue the opportunities to grow our businesses with a gross investment of over £800. Next year the group is well-positioned for further progress, with the continued expansion of Primark, a material improvement in our sugar profit and strong profit growth in grocery.”