Primark’s revenue increased by 22%, to GBP4.27bn, for the year ending 14 September 2013. The fashion store’s like-for-like sales also rose by 5%, despite the economic turn down. In addition, the company’s operating profit accelerated by 44% to GBP514m. This was helped by the lower price of cotton and strength in summer trading, which meant there was less need for markdowns in the second half. These results are also said to be due to the company’s low pricing structure and its fast adoption of the latest fashion trends.
Associated British Foods, which also owns British Sugar and several food brands such as Kingsmill, Ryvita and Ovaltine, has reported a 13% rise in full year pre-tax profit to GBP1.1bn. The group’s total increased by 9% to GBP13.3bn.
During the year, Primark expanded in Europe with the opening of 15 new stores, four of which are in the UK and include a second store on Oxford Street in London. The fashion chain now has 257 stores in eight countries around the world. It reportedly plans to open another 13 stores by Christmas, including five in Spain and its first store in Marseille, France.
According to AB Foods, Primark had also made ‘significant progress’ with its ethical trade programme following the collapse of the Rana Plaza factory in Bangladesh in April this year, which killed more than 1,100 people. AB Foods has reportedly paid short-term financial support of six months’ salary to more than 3,600 people who worked in the building, irrespective of their employer. It added that Primark now has 40 in-country ethical trading specialists, including eight located in Bangladesh.