Overview

• Primark's UK sales rose by 11% fueling a 16% increase in revenue, despite higher prices and rising costs due to inflation.
• Due to the rising cost of raw materials, energy and shipping, Primark's profits fell by 3%, despite a rise in revenue; however, CEO Mr. Weston predicts that profit margins will rise above 10% as inflation cools.
• Primark is planning to open another 100 stores in the next three years, fuelled by a record Christmas last year, which included a resurgence in women’s partywear and high sales of beachwear and luggage.
• Shares in Primark owner, ABF, rose 6% with the company announcing a share buyback and a special dividend. ABF's financial leverage stood just below 1 times, enabling it to repurchase £500 million of its shares and to pay a special dividend of 12.7p per share.
• Associated British Foods expects further growth in Primark's sales in the coming financial year, driven by an anticipated strong recovery in its fashion business due to lower material and freight costs, an improvement in its sugar business, and a stable performance from its grocery business including brands such as Twinings tea, Ovaltine and a large sugar business.