Irish retailer Primark's sales up 1% in H1 2025; ABF holds outlook

Primark, the retail arm of Associated British Foods (ABF), has posted a 1 per cent rise in sales to £4.5 billion (~$5,985 billion) and an 8 per cent increase in adjusted operating profit to £540 million (~$718 million) for the 24 weeks (H1 2025) ended March 1, 2025. Growth in Europe and the US offset a weaker retail environment in the UK and Ireland.

Primark continues to target low-single digit sales growth for the year, driven by store expansion in growth markets. Operating margins are expected to remain broadly in line with last year, though second-half margins will be lower due to phasing of one-off items that benefitted the first half.

"Primark delivered good growth in Europe and the US, with continued consumer caution in the UK. Primark's profit and margin delivery was strong and our low-cost operating model is working well. Our focus remains on sharp execution of our key growth initiatives across product, brand, digital and new market entry," said George Weston, chief executive of Associated British Foods.

At the group level, a 10 per cent decline in adjusted operating profit to £835 million (~$1,111 million) for the 24 weeks ended March 1, 2025. Group revenue stood at £9.51 billion, broadly in line with the prior year. Adjusted profit before tax dropped 10 per cent to £818 million, while adjusted earnings per share declined 8 per cent to 83.6p (£0.836), supported partially by share buybacks, the group said in a release.

Free cash flow shrank significantly to £27 million from £468 million a year ago, reflecting lower profits and seasonal working capital outflow.

The group reiterated its full-year outlook, excluding a downward revision for Sugar, and confirmed the impact of US tariffs will be absorbed in the second half.

“Looking ahead, in an operating environment with significant uncertainties, the group remains well positioned and our strong balance sheet enables continued investment to deliver long-term sustainable growth," Weston added.

ALCHEMPro News Desk (HU)