• FY adjusted operating profit jumped 44% to GBP514m
  • Revenue up 22% to GBP4.27bn 
  • Like-for-like sales grew 5%
ABF chief executive George Weston said it was a remarkable year for Primark

ABF chief executive George Weston said it was a remarkable year for Primark

UK value apparel chain Primark has hailed a 44% hike in full-year profit, bolstered by ongoing store expansion, particularly in Europe, during what it described as an "outstanding" year.

Adjusted operating profit jumped 44% to GBP514m (US$825.3m) during the 52 weeks to 14 September, compared to GBP256m in the same period last year.

Revenue increased 22% to GBP4.27bn from GBP3.50bn in the prior year period. On a like-for-like basis, sales grew 5%, dampened by two periods of unseasonable weather during the year.

George Weston, chief executive of parent company Associated British Foods (ABF) said: "It was a remarkable year for Primark."

During the year, the value fashion chain increased its retail presence by 10% - continuing to pursue expansion opportunities in continental Europe, and expects this to increase in the coming year.

"Each new store opening generated excitement which gives us the confidence to believe that Primark is capable of much further growth and I look forward to the opening of our first store in France," Weston added.

ABF also attributed the growth to both Primark's autumn/winter and spring/summer ranges selling out with little discount.

Meanwhile, Primark said it made significant progress with its ethical trade programme, setting up a team of around 40 in-country ethical trading specialists, of whom eight are located in Bangladesh.

Last month, the company set a timetable to start long-term compensation payments to the 550 workers or their dependants from New Wave Bottoms, its supplier based in the Rana Plaza building.

Commenting on the stellar set of results, Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers, said Primark was ABF's "jewel in the crown, driving performance over the last year".

"Ongoing expansion at Primark is largely being aimed at budget constrained European consumers, whilst a focus on costs remains central across the company."

Click on following link for more insight into Primark's performance: UPDATE: UK: European expansion remains key focus for Primark