ABF expects Primark to smarten up
Wednesday 25 April 2012
Primark, the value fashion chain, is expecting strong profits growth over the next six months after a flat first half, its owner Associated British Foods said yesterday.
Soaring cotton prices, which Primark tried not to pass on to customers, saw operating profits rise just £3m to £154m on sales up 15 per cent at £1.6bn in the 24 weeks to 3 March. But cotton prices are now less than half their peak last year and the chief executive, George Weston, said that should mean better margins on still-growing sales in the second half.
He said: "People are being squeezed but we have a great deal of confidence in our stores. Interestingly, in Germany, where the economy is strongly placed, Primark is doing really well and in Spain and Portugal, where the economies are challenged, Primark is doing really well."
On the groceries side, the owner of Twinings, Ovaltine and Kingsmill bread saw operating profits drop from £109m to £75m.
The real boost to ABF came from sugar, where profits jumped 59 per cent. ABF's total pre-tax profit rose3 per cent to £363m and the dividend goes up 8 per cent to 8.5p.
- 1 BBC told new political editor must be 'impartial' with Nick Robinson reportedly stepping down
- 2 Number of young homeless people in Britain is 'more than three times the official figures'
- 3 Humans of New York image of crying gay teen receives best response yet from Ellen DeGeneres
- 4 The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
- 5 Swedish minister gives strongest case yet on why EU should stop turning away asylum seekers
BBC told new political editor must be 'impartial' with Nick Robinson reportedly stepping down
Isis propaganda video shows 25 Syrian soldiers executed by teenage militants in Palmyra
Number of young homeless people in Britain is 'more than three times the official figures'
Humans of New York image of crying gay teen receives best response yet from Ellen DeGeneres
The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
More Britons believe that multiculturalism makes the country worse - not better, says poll
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...