Business World

Monday 16 September 2019

Strong Primark performance helps profits increase at AB Foods

Primark, which trades as Penneys in Ireland
(PA)
Primark, which trades as Penneys in Ireland (PA)
Ellie Donnelly

Ellie Donnelly

A strong performance by clothing chain Primark – which trades as Penneys in Ireland – helped Associated British Foods (ABF) report sales of £15.6bn (€17.8bn) for the year-ended 15 September.

This was a 1pc increase year-on-year.

Adjusted operating profit increased 3pc year-on-year to £1.4bn, according to the group’s annual results.

Meanwhile profit before tax grew 5pc to £1.37bn.

Divisionally, Primark, ingredients, agriculture and grocery accounted for the year-on-year advances in adjusted earnings before interest and tax, while sugar profits declined 51pc year-on-year to £123m.

"This was another year of progress for the group," George Weston, chief executive of Associated British Foods, said.

"We continued to pursue the opportunities to grow our businesses with a gross investment of £1.2bn."

"Looking ahead, management have clear plans for further investment and for pursuing opportunities for business improvement."

Primark, which trades as Penneys in Ireland, reported an increase in operating profits of 15pc year-on-year to £843m, with an operating margin of 11.3pc.

The group currently has 37 Penneys stores in the Republic of Ireland.

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