Search

Primark sales extend strong run

10:59 10 July 2014

Primark store. Photo: Lewis Stickley/PA Wire

Primark store. Photo: Lewis Stickley/PA Wire

Primark’s sales growth has continued to accelerate after the retail chain benefited from warm weather and a busy period of store openings.

Associated British Foods, which also owns household brands such as Kingsmill, Twinings and Ovaltine, said Primark’s total revenues growth was 22% in the quarter to June 21 at constant exchange rates.

This brought the improvement in the first 40 weeks of its financial year to 17% and reflected the impact of warmer weather compared with a year ago in March and April and continued strong trading over the following two months.

Selling space increased by one million sq.ft on a year earlier to take the Primark estate to 275 stores covering 10 million sq ft in locations across Europe.

A further nine new stores have been opened since the end of the period, including a new outlet in Canterbury and a relocation in Cardiff.

Across the group, quarterly revenues were 3% higher at constant exchange rates but 3% lower when currency movements are included.

It said sterling was stronger than most of its major trading currencies in the first half of the financial year, adding that if current rates prevail it will suffer a £50 million impact compared with last year’s earnings.

However, shares opened higher today as the company said strong levels of profitability in retail, grocery and ingredients meant it was now on course to grow earnings per share in the current financial year.

In grocery, revenues were 5% lower compared with last year at constant exchange rates, with the majority of the decline caused by lost contracts and lower UK sugar pricing at Silver Spoon.

This was offset by market share growth for Kingsmill in the face of challenging trading conditions, while Twinings Ovaltine continued its recent record of profit and sales momentum.

Sugar revenues in the last 16 weeks were 20% lower than last year at constant currency, driven by substantially lower sugar prices, weaker EU sales volumes and lower sugar production in North China.

The decline reflects the end of EU sugar quotas in 2017, although the speed of adjustment has been faster than the company expected.

The UK sugar campaign in 2013/14 benefited from the mild winter as the company produced 1.32 million tonnes of sugar compared with 1.15 million tonnes the previous year, with beet yield per hectare 12% ahead. Record operating performances were achieved at all plants, the company added.

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other Eastern Daily Press visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Eastern Daily Press staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Eastern Daily Press account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

HOT JOBS

Show Job Lists

Insight

Employers in East Anglia are paying staff more and looking at benefits packages in a bid to attract and retain staff.
Photo credit: Philip Toscano/PA Wire

If you excel at your job then now might be the time to speak to your boss about a pay rise or equally look for an upgrade in your benefits package.

                                 Managing Director of Bakers and Larners of Holt, Michael Baker, pictured at the Holt department store.

Picture: MARK BULLIMORE

Family businesses are the lifeblood of the economy, but can often be weighed down by tradition. Now a report seeks to champion the region’s oldest family firms. Business writer SABAH MEDDINGS reports.

Green 100

cover

Enjoy the Green 100
digital edition

Read

Mustard TV

Meet the Team

Mark Shields

Business Editor

|

Chris Hill

Agricultural and Farming Editor

|

Shaun Lowthorpe

Business Publishing Editor

|

Sabah Meddings

Business Writer

|

Kate Royall

Business Writer

|

Duncan Abel

Business Development Manager

Business Most Read

Awards

Norfolk Future 50 EDP Business Awards Green 100

Business Most Commented

Newsletter Sign Up