Primark full-year profits skyrocketed on the back of sales growth and significant margin recovery as the boss of parent company Associated British Foods George Weston declared: “Our low-cost model is as strong as ever.”
Adjusted operating profit soared 51% to £1.1bn at the fashion retailer as margin rose from 8.2% last year to 11.7%.
Sales jumped 6% to £9.4% as the value fashion giant heralded a strong performance across markets such as the US, France, Spain, Italy and Central and Eastern Europe as well as “growth” in the UK.
The retailer said it benefitted from the relevance of its “great value clothing, unique store experience and increased digital engagement”.
Primark is now targeting mid-single digit sales growth in 2025 and expects its margin to hold steady.
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The retailer will push ahead with its store rollout programme in its growth markets in Europe and the US, where Weston said there was “significant white space for new stores”, which would help it drive “sustainable growth over the medium and long term”.
It expects new stores to contribute around 4% to 5% per year to Primark’s total sales growth for the foreseeable future as it also focuses on like-for-like sales growth in its more mature markets.
Weston said: “Primark achieved good sales growth this year and I am particularly pleased with the significant recovery in margin.
“Our low-cost model is as strong as ever, as we maintain our relentless focus on delivering great-value clothing and a unique store experience. This is underpinned by a step up in investment in strategic initiatives across digital, product and brand.”
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