Primark has mentioned it will not additional increase costs regardless of important prices because it introduced a return to pre-COVID-19 gross sales and market share within the UK.
Commenting on Primark‘s full-year outcomes, the chief government of its father or mother firm, Associated British Foods, mentioned: “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 pricing against these highly volatile input costs and exchange rates.”
George Weston, mentioned Primark has confronted “significant input cost inflation and sharply moving currency exchange rates”.
Despite that, it reported that like-for-like gross sales and market share within the UK at the moment are broadly according to pre-COVID ranges.
The quick trend retailer skilled a “significant” improve in buyer footfall as markets emerged from the pandemic, Associated British Foods mentioned.
Total gross sales had been up 43% to £7.7bn, in comparison with final yr, although gross sales had been weaker in continental Europe on account of cautious buyer sentiment.
Mr Weston credited the numerous improve in gross sales, margin and earnings at Primark with the return of “normal customer behaviour”.
He highlighted plans to construct the retailer’s digital functionality by trialling a web based click on and accumulate in retailer service in 25 UK retailers, “which will be a key element in the future development of Primark”.
For the primary time in its historical past, the father or mother firm, Associated British Foods, introduced it was going to purchase again £500m value of shares from shareholders. Shareholders are additionally going to get a payout improve of 8%.
The father or mother firm owns a spread of family manufacturers resembling Kingsmill, Twinings, Patak’s and Ryvita and mentioned there was a “robust” supply in meals with retail efficiency strongly forward.
Food gross sales grew 10% on the earlier yr.
The revenue will increase will not final endlessly, and group earnings and adjusted earnings per share shall be decrease subsequent yr than this yr, Mr Weston mentioned.
Source: information.sky.com”