Primark fuels sales rise at ABF
PRIMARK owner Associated British Foods said third quarter sales rose 13 per cent and expected very strong growth in annual earnings, driven by its fashion discount retailer.
The London-based food and retail group, giving a third quarter trading update for the 16 weeks to June 19, also said group revenue for the year so far, or the 40 weeks to 19 June, rose 14 per cent.
“Trading for the group since the half year remains on track to deliver very good progress in earnings for the full year,” the company said in a statement.
The group, 55 percent owned by the family of chief executive George Weston, said third quarter sales at its 198 Primark stores were up 15 percent to show a 17 per cent rise in the nine-month period, driven by a rise in space and like-for-like sales growth.
“Another upbeat trading statement from ABF, with Primark in particular impressing,” said Panmure Gordon analyst Graham Jones.
The company, which markets Silver Spoon sugar, Mazola vegetable oil, Ovaltine drinks and Twining teas, has benefited from a strong recovery at its sugar and grocery businesses after heavy investment and a pick-up in demand, while Primark’s growth continues to outperform its high street rivals.