Associated British Foods has revealed robust fiscal results, with Primark emerging as a standout performer. Group revenue surged by 16% to £19.75 billion, driven by Primark’s exceptional sales.
In the retail division, Primark witnessed a remarkable 17% revenue rise, exceeding £9 billion. Despite a 3% dip in adjusted operating profit to £735 million, the brand’s operating profit soared by 30% to £717 million. The adjusted operating profit margin for the year settled at 8.2%.
Primark’s success can be attributed to strategic price adjustments to counter input cost inflation, well-received product ranges, and heightened appeal to a broader customer base. Positive footfall, successful new store launches, and an upgraded customer website further contributed to its stellar performance.
Throughout the year, Primark surpassed expectations, registering sales growth across all markets. Like-for-like sales soared by an impressive 8.5%, fueled by increased average selling prices, higher unit volumes, and a steadfast commitment to customer satisfaction.
Collaborations remained a strong suit, with successful partnerships featuring Stacey Solomon, Kem Cetinay, Paula Echevarria, and an internationally acclaimed collaboration with Rita Ora. Licensed product sales experienced significant growth, notably during the Christmas season, featuring collections with Disney, Netflix, The Grinch, NFL, NBA, and a summer hit with Mattel’s Barbie.
Despite challenging weather conditions in certain regions, Primark’s core product ranges maintained robust demand, mitigating volatility in fashion-dependent sales. Regionally, the UK witnessed an 11% sales surge, while Europe (excluding the UK) reported an impressive 18% rise in sales.
Primark’s footprint in the US expanded, with total net sales surging by 24%. The brand continues to focus on digital initiatives, with an enhanced website garnering positive customer responses and increased traffic. Click + Collect trials have been expanded, showing promising early results.
Primark’s fiscal triumph underscores its adaptability, resilience, and unwavering commitment to meeting evolving consumer needs in today’s dynamic retail landscape.