Apr 19, 2017
Primark owner Associated British Foods sees profits jump
Pre-tax profits jumped by 35% to £624m in the 24 weeks to 4 March, with revenues up by 19% to £7.3bn. ABF said profit growth in the second half would be "Tempered" by the weaker pound pushing up the cost of imports. It added the outlook for full-year profits had improved. "However, profit growth in the second half will, at current exchange rates, be tempered primarily by a smaller translation benefit and the full effect of the devaluation of sterling against the US dollar on Primark's margin." Mr Sinclair also pointed to the "Major contribution" to profits growth made by "Substantial increases" in its grocery and ingredients businesses, whose brands include Twinings, Ovaltine, Kingsmill bread, Jordans, Dorset Cereals, Patak's and Blue Dragon. When the proceeds of these disposals are taken into account, unadjusted pre-tax profits rose by 92% to £867m. It opened 16 new Primark stores in eight countries.
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