By Laura McGuire
Primark owner Associated British Foods (ABF) has continued to rack in hefty profits despite the cost of living crisis, with group revenue for the full year rising 16 per cent to £19.7bn.
The owner of the budget fashion brand said that revenues at its retail arm rose 17 per cent to £9bn as customers flocked to high street stores to seek out affordable clothing.
ABF also said that trading at Primark remained robust despite unseasonable weather impacting customers’ buying decisions as collaborations with celebrities such as singer Rita Ora helped draw shoppers in.
Primark, which does not have a full suite of online shopping services, has also been aided by click and collect trials, in a handful of its shops in the UK.
ABF also opened one million square feet of space throughout the year, including stores in the US, and Northern Ireland.
Looking ahead, the firm, which also owns brands such as Twinings, said it expects stability across its grocery division as inflation declines and it ramps up investment in marketing in its international brands.
However, warned that British sugar production was significantly down after poor weather conditions reduced beet yields and the business had to “obtain expensive alternative sources of supply to make good the resulting production shortfall”.
George Weston, chief executive of Associated British Foods, said: “Although consumer demand remains uncertain, Primark is as well placed as it has ever been.”
“We continue to believe that Primark’s offer is very attractive not just to existing customers but also to new customers engaged by our digital platform, new store openings, and word of mouth which remains as powerful as ever.
He added: “With Primark margin now moving back to its historic levels, we view the future for this business with confidence. Our food businesses are also in very good shape, and our Sugar business especially should see much better profitability in the year ahead.”
