Primark revenues surpass £3bn
Trading in Europe was also strong with sales up 16% with growth in all markets and like-for-like sales 8% higher
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Primark owner Associated British Foods has announced that its retail revenues for the year reached £3.15bn.
In a trading update for the 16 weeks ended 7 January 2023, the company stated that its retail revenues were up 18% compared with last year and up 15% at constant currency rates.
Primark’s like-for-like sales were up 11% supported by higher unit volumes, higher average selling prices and a normalised level of markdown. The retailer also saw record sales in the week leading up to Christmas Day.
The company’s market share, including online sales, in the UK reached 7%, up from 6.5% in the comparable period last year. It stated that footfall was now high in major city centres as well as on high streets and retail parks.
Trading in Europe was also strong with sales up 16% with growth in all markets and like-for-like sales 8% higher. Primark opened 12 new stores in Europe in the period.
Primark’s adjusted operating profit margin in the period was better than expected due to the sales performance, however it added the margin was somewhat lower than in the same period last year as a result of “inflation and the strengthening of the US dollar against sterling and the euro”.
ABF said: “Primark trading has been good in all our markets and was ahead of expectation. We had a very strong Christmas period. We believe our proposition of great quality at affordable prices and attractive store experience is proving increasingly appealing to both existing and new customers.
“Early trading in this new calendar year has been encouraging but macroeconomic headwinds remain and may weigh on consumer spending in the months ahead. We had an accelerated programme of store openings in the period and remain on track to add a net 1 million sq ft of retail selling space in this financial year.”
It continued: “For the full year, our expectation for the group result overall is unchanged with a significant growth in sales, and adjusted operating profit and adjusted earnings per share to be lower than the previous financial year.”
