Primark half-year sales ‘excellent’

THE success of Primark, which trades as Penneys in Ireland, showed no signs of ending after its owner promised excellent results from the chain.

Associated British Foods, which also owns brands Twinings, Kingsmill and Silver Spoon, said that Primark’s half-year sales were substantially ahead of last year, helped by new space and a 5% rise in like-for-like trade.

The discount fashion chain, which became known for its super-cheap clothes long before the credit crunch, now has 187 stores following a sharp expansion in Britain and Spain in recent years.

AB Foods will open two more stores in Spain, plus its first outlets in Germany and Portugal.

As well as the “excellent” results from Primark, AB Foods said its sugar and ingredients businesses would show good growth when it presents half-year figures on April 21.

However, the grocery division will show a decline on last year due to a substantial margin reduction at its North American food business ACH.

Profits at Twinings Ovaltine improved with strong growth from Ovaltine in developing countries, offset by a slowing rate of growth in premium teas, particularly in the Britain and the US.

The Kingsmill bread business continued its recovery, with higher volumes and improved profits. AB Foods shares were 2% up yesterday.