25pc increase in sales at Primark drives ABF shares up 5pc
Shares in Associated British Foods (ABF)shot up over 5pc this morning after sales at its Primark unit were better than expected in the latest trading period , which included Christmas.
ABF said that Primark, which is headquartered in Dublin and trades as Penneys in Ireland, had performed “above expectations” in the 16 weeks to January 5, with sales 25pc higher than in the corresponding period during the previous financial year.
The discount fashion retailer benefited from better like-for-like sales, which were up 9pc. An increase in selling space across the Primark network helped to propel total sales 25pc higher. The chain has expanded steadily on continental Europe in recent years. It also completed a major revamp of its outlet on Dublin’s Mary Street and opened a new store on London’s Oxford Street.
Controlled by Canada’s Weston family, which also owns Brown Thomas and Selfridges, ABF said that in light of the group’s current performance, it expects to make “further progress” in its adjusted operating profit for the full financial year.
ABF has a diverse operational portfolio. It’s one of the world’s largest sugar producers and also manufactures agricultural products. It also owns brands such as Ryvita, Ovaltine, Twinings and Blue Dragon.