Primark’s owner posts rise in revenues; remains cautious

Associated British Foods, the owner of the discount fashion retailer Primark, has posted an increase of 12 per cent in revenue to £9.3 billion this year.

But, ABF said its pre-tax profits dipped 6 per cent to settle at £495 million, while adjusted pre-tax profits jumped to £655 million, gaining 4 per cent.

ABF said its performance hurt by a £65 million loss, mainly due to the rationalization of its US packaged oil business.

However, like-for-like sales at the Primark stores jumped 7 per cent.

Primark is on its track of expansion. It opened 4 stores in Britain, 5 in Spain and one each in Portugal, Germany and the Netherlands over the year.

Group's net debt slipped from £1.15 billion at the half year to £999 million.

Still, ABF said it would remain cautious about the outlook for customers over next year.

Group's cautious comments over outlook dragged its shares down by 1.5 per cent to 820½p-a-share in the yesterday's trading.