Business Irish

Tuesday 20 February 2018

Penneys parent AB Foods results beat forecasts

Primark, as Penneys is known outside of Ireland, had 'an exceptional year.' Photo: Bloomberg News
Primark, as Penneys is known outside of Ireland, had 'an exceptional year.' Photo: Bloomberg News

Associated British Foods, trading as Penneys here, reported a 13pc rise in full-year profit on Tuesday as its Primark discount fashion chain expanded apace, although it expects a hit from falling sugar prices next year.

AB Foods reported adjusted pretax profit of over £1bn for the financial year to Sept. 14, on revenues up 9pc to £13.3bn, beating average analyst expectations.

Adjusted earnings per share rose 13pc to 98.9p.

Primark, which has more than 250 stores in Britain and Europe and generates more than a quarter of group sales, has performed well through the economic downturn thanks to its low prices and quick adoption of fashion trends.

AB Foods said it expected Primark's continued expansion as well as growth in its grocery business should boost profits in those units next year, although it forecast a further fall in profit from its AB Sugar business as European sugar prices drop.

Analysts had expected the group to report revenue of £13.24bn, pretax profit of £1.06bn and earnings per share of 97.79 pence, according to SmartEstimates from Thomson Reuters.

Reuters

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