Primark delivers "exceptional" Christmas sales
19 January 2012 10:12
Associated British Foods-owned Primark saw sales soar over the Christmas trading period, as it continues to build up its presence on the high street.
ABF said that total sales at its 232 stores across Europe were up 16% in the 16-week period to January 7th compared to a year earlier.
It described the clothing chain's sales performance as "exceptional" and while it did not provide a figure excluding new openings it said that like-for-like sales growth was "good", helped by particularly strong trading over Christmas.
The period was a busy one for store openings as the company unveiled two new shops in the UK, including a flagship store in Edinburgh. Stores also opened in Spain, Germany, Portugal and the Netherlands, bringing the total number of openings for the quarter to nine. It has 156 stores in the UK.
Together with strong growth in its sugar business and an improved performance at its Kingsmill-branded Allied Bakeries division, ABF said revenues were 12% higher in the 16-week period.
Its Twinings and Ovaltine brands were buoyed by increasing demand for tea in the United States and Ovaltine hot malt drinks in developing markets.
But difficult trading conditions for Australian subsidiary George Weston Foods were compounded by a lack of efficiency driving up costs at a new meat factory in Castlemaine, Australia.
Falling cotton prices also look set to help Primark, with the benefits of lower input costs expected to ease pressure on its margins.
Looking ahead, ABF added: "We expect growth in sales and adjusted operating profit in the coming year, with the profit improvement weighted towards the second half."
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