Primark proprietor Related British Meals (ABF) reported a 12% decline in working revenue to £835m within the interval.
Group income fell 2% to £9.5bn, whereas revenue earlier than tax dipped 10% to £818m.
George Weston, chief government of ABF, mentioned: “Primark delivered good progress in Europe and the US, with continued shopper warning within the UK. Primark’s revenue and margin supply was robust and our low-cost working mannequin is working effectively. Our focus stays on sharp execution of our key progress initiatives throughout product, model, digital and new market entry.
“Trying forward, in an working atmosphere with important uncertainties, the group stays effectively positioned and our robust steadiness sheet permits continued funding to ship long-term sustainable progress.”
ABF’s full-year outlook stays “low single-digit gross sales progress” for Primark.
This can be pushed by a retailer rollout programme in progress markets in Europe and the US, which is on observe to contribute round 4% to complete Primark gross sales progress, offset by weaker gross sales within the UK and Eire.
ABF’s assertion continued: “Whereas we proceed to imagine our buying and selling within the UK stays difficult within the second half of 2024/25, there have been some early indicators of enchancment in current weeks. We’re centered on driving underlying progress throughout our markets as we proceed to strengthen Primark’s nice worth proposition by initiatives in product, digital and model.
“We proceed to anticipate adjusted working revenue margin in 2025 to be broadly in step with final 12 months’s stage. This displays an enchancment in gross margin and good price administration, offsetting wage inflation and a step up in funding.
“Our adjusted working margin within the second half of 2024/25 is anticipated to be decrease than it was within the first half, given the affect from phasing of one-off gadgets. We proceed to make good progress with our retailer rollout programme and goal a contribution of round 4% to five% to Primark’s complete annual gross sales progress for the foreseeable future.”
In January’s outcomes for the 16 weeks to 4 January 2025, ABF lowered its gross sales outlook for the 12 months, because it battled “weak” buying and selling exercise in its house markets of the UK and Eire. In the course of the interval, Primark’s enterprise within the UK and Eire, which account for round 45% of complete gross sales, confirmed a gross sales decline 4% 12 months on 12 months, with like-for-like gross sales falling by 6%.
