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Penneys business is booming

Business is booming for Primark's parent company, its profits grew by a massive 36% to £652...
Newstalk
Newstalk

09.42 19 Apr 2017


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Penneys business is booming

Penneys business is booming

Newstalk
Newstalk

09.42 19 Apr 2017


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Business is booming for Primark's parent company, its profits grew by a massive 36% to £652m in the six months to the end of March.

Primark, or Penney's in Ireland, is owned by Associated British Foods. Its business interests are mainly in foods and ingredients.

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George Weston, Chief Executive of Associated British Foods, commented:

"The underlying growth of the group at constant currency was strong in the first half. Primark delivered a substantial increase in selling space which, together with its strong consumer offering, contributed to a further increase in our share of the total clothing market.

"Furthermore, we achieved a more acceptable rate of return in Sugar and further good progress was made by our Ingredients and Grocery businesses," he added in a statement.

The group's revenue rose to £7.3bn - which was a 19% increase.

"The impact of the US dollar’s strength on Primark’s input costs have been well flagged and our commitment to price leadership in clothing retail has seen, as forecast, a decline in its operating margin," the company warned.

Primark has promised to absorb costs related to sterling's dip across its business without increasing prices.

Its sales are up by 11% this year on a constant currency basis as it has continued to open new stores across Europe and in the US.


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