Primark's owner ABF posts revenue growth despite rocky retail environment

Alys Key
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Primark is widely seen as the jewel in ABF's crown (Source: Getty)

Primark's owner reported solid growth this morning, even as other budget fashion retailers struggle with hefty rents and slower sales.

Associated British Foods (ABF), which also owns several household food brands such as Dorset Cereals and Blue Dragon, said that revenue was up three per cent to £7.4bn in the 24 weeks to 3 March.

Read more: Fast fashion retailer Quiz launches menswear brand

Adjusted profit before tax was up one per cent to £628m for the period, while earnings per share grew three per cent to 61.3p.

The company confirmed a dividend of 11.7p, marking a three per cent increase on last year's payout.

Sales and profit grew across all the group's businesses except for the sugar division, which has been struggling due to lower EU sugar prices.

The dip in sugar was expected after the group warned this would weigh on overall profitability in January. Adjusted operating profit was £648m during the period, down from earlier guidance on £652m.

But the continued success of Primark continued to impress the City, especially as other budget fashion retailers New Look and Select both recently passed company voluntary arrangements (CVAs) to deal with tough trading.

Read more: New Look's creditors approve deal to reduce rents and close stores

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