Sterling alert as Primark's owner posts £1.1bn profit
Primark owner Associated British Foods (ABF) has warned that sterling's slump against the dollar will impact the clothing chain's UK margins in the coming year.
However, the group as a whole could benefit from changes in legislation and trade agreements as a result of Brexit, it said.
Full-year results reported by ABF yesterday were slightly ahead of expectations, with group revenue up 5% at £13.4bn and adjusted operating profit 3% higher at £1.1bn. Shares in the group soared over 6%.
Primark - which is headquartered in Dublin - saw its sales jump 11% to £5.9bn in the 53 weeks to September 17, with its adjusted operating profit rising 2% to £689m. On a constant currency basis, revenue was 9% higher and profits were up 1%.
ABF said sales increase at Primark were driven by expansion. "Unseasonable weather and cautious consumer sentiment led to value declines in the clothing retail sector in some of our important markets," it noted.
Like-for-like sales in the financial year were down 2%.