The parent business of Primark stated that it confronts large expenses and volatile foreign exchange rates.
While announcing a recovery to pre-COVID-19 sales and market share in the UK, Primark stated that it will not hike prices further despite hefty expenditures.
Commenting on Primark’s full-year results, the CEO of Primark’s parent company, Associated British Foods, said, “We have decided to hold prices for the new financial year at the levels already implemented and planned, and to stand by our customers, rather than set prices in response to these highly volatile input costs and exchange rates.”
According to George Weston, Primark has experienced “substantial input cost increases and drastically fluctuating currency exchange rates.”
Despite this, the company announced that its like-for-like sales and market share in the United Kingdom have returned to pre-COVID levels.
As markets emerged from the pandemic, the fast fashion shop saw a “substantial” boost in customer foot traffic, according to Associated British Foods.
Total sales were up 43% to £7.7bn, compared to the previous year, while sales were worse in continental Europe due to cautious client mood.
Mr. Weston attributed Primark’s considerable sales, margin, and profit growth to the return of “normal customer behavior.”
He emphasized efforts to improve the retailer’s digital capability by testing an online click and collect in-store service in 25 UK stores, “which will be crucial to the future success of Primark.
Associated British Foods stated for the first time in its history that it would buy back £500 million worth of shares from shareholders. In addition, an 8% dividend increase will be distributed to shareholders.
The parent firm owns a variety of household brands, including Kingsmill, Twinings, Patak’s, and Ryvita, and reported a “robust” food delivery with retail performance much ahead of expectations.
Food sales increased by 10% compared to the prior year.
Mr. Weston stated that the profit rises will not continue indefinitely and that next year’s group profits and adjusted earnings per share will be lower than this year’s.
