Primark Surges 53% in Profits Despite Summer Weather Woes
- Primark's operating profits rose by 53% to £1.1 billion despite challenges from adverse weather.
- The UK store sales experienced a mixed year with a 1% overall rise, counterbalanced by a 1.3% decline in the latter half.
- Primark aims for sustainable growth moving forward, emphasizing new store openings amidst an overall positive trend.
Primark, owned by Associated British Foods, experienced a significant increase in operational profits, soaring by 53% to £1.1 billion for the fiscal year ending September 14, 2024. This growth occurred despite adverse weather conditions impacting summer clothing sales, which saw demand dipped due to wet weather during April and June. In the UK, same-store sales rose by only 1% overall, as a promising first half was overshadowed by declines in the latter half of the year. Interestingly, the company's performance was buoyed by strong like-for-like growth in the weeks leading into the fall/winter season. While the overall group of AB Foods exhibited a 43% uptick in pre-tax profits, challenges loom on the horizon, particularly pertaining to their sugar business, which faces pricing pressures in Europe. The company projects a notable dip in sugar profitability for the 2025 financial year, although recovery is anticipated in 2026. Primark aims for mid-single-digit sales growth in the coming year, supported by new store launches in the US and Europe, even as it predicts stable profit margins in the fashion division due to increased investment for growth.