Primark owner ABF hailed strong results today as it put Covid firmly in the past and said there is now “normality” in its supply chains.
It also says its central London stores, particularly on Oxford St, are trading well, especially in the evening.
That is a sign that people are back in offices and back out enjoying themselves in the West End.
The clothes to foods giant made profit in the first half of the year of £881 million, a rise of 37%. The interim divi is up 46% to 20.7p, worth many millions to the Weston family that controls the business.
George Weston, Chief Executive of Associated British Foods, said:
"This is a very strong set of financial results, as we are now benefitting from the restoration of some normality in our markets and in our supply chains. Improvements to the Group's operational performance, driven by the investments and strong execution over the last few years, are now becoming visible. Group profit margins are recovering accordingly to more normal levels.
Looking ahead, we continue to invest with discipline to build further sustainable growth. Geopolitical risks remain, of course, and the consumer has yet to fully emerge from cost of living pressures. But the Group is well positioned to deliver good returns to shareholders."
Weston thinks in the inflation problem has been mostly dealt with. “There is some left, but not much,” he said. ABF has not put up prices at its food arm or at Primark in the last six months, he said.
Primark has 192 UK stores and sees opportunities to improve the estate with more and better stores as others close.
A link up between Rita Ora and Primark seems to be working well.
Weston has previously said that Oxford Street needs more help from tourism bosses. The area has “deteriorated” he has said.
Rival retail bosses have agreed with him.
Richard Hunter, Head of Markets at interactive investor, said: “With the ravages of the pandemic now firmly in the rear-view mirror, Primark has fully regained its status as the jewel in the AB Foods crown, with the group confident that there is much more to go for.”
