This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-12237010
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Primark sales rise despite cost pressures | Primark sales rise despite cost pressures |
(1 day later) | |
Clothes chain Primark saw strong sales growth in the final four months of last year despite higher costs and severe weather in December, owner Associated British Foods (ABF) has said. | |
Total sales in the 16 weeks to 8 January were up 12% on a year earlier, reflecting "good" like-for-like sales and 10 new store openings. | Total sales in the 16 weeks to 8 January were up 12% on a year earlier, reflecting "good" like-for-like sales and 10 new store openings. |
But the group said margins at Primark would come under pressure from the VAT increase and higher cotton prices. | But the group said margins at Primark would come under pressure from the VAT increase and higher cotton prices. |
ABF revenue grew 10% from a year ago. | ABF revenue grew 10% from a year ago. |
"With Primark's value offering still appealing to cost-conscious consumers, the cold weather appears to have provided owner ABF with few problems," said Keith Bowman at Hargreaves Lansdown. | |
Higher prices | |
ABF said said that "good growth" was achieved by all of its UK grocery businesses. | |
The group said that the cost of a number of commodities had increased "significantly" over the period, and that it would have to increase prices to offset higher wheat costs in particular. | The group said that the cost of a number of commodities had increased "significantly" over the period, and that it would have to increase prices to offset higher wheat costs in particular. |
It also said profits in the coming year would be "moderated" by the impact of adverse weather on UK sugar production. | It also said profits in the coming year would be "moderated" by the impact of adverse weather on UK sugar production. |
Primark operates 214 stores mostly in the UK, although it also trades in the Irish Republic, Spain, Germany, Portugal, the Netherlands and Belgium. | Primark operates 214 stores mostly in the UK, although it also trades in the Irish Republic, Spain, Germany, Portugal, the Netherlands and Belgium. |
As well as Primark, ABF owns a raft of well-known food brands, including upmarket tea business Twinings, Silver Spoon sugar, Kingsmill bread and Patak's spices. | As well as Primark, ABF owns a raft of well-known food brands, including upmarket tea business Twinings, Silver Spoon sugar, Kingsmill bread and Patak's spices. |
Previous version
1
Next version