Associated British Foods, the parent company of Penneys, has reported statutory operating profit of close to £1.2bn and earnings per share of 88.6 pence for its latest financial year, an improvement of 46% year-on-year.

Penneys alone recorded a 43% increase in total sales, bringing in £7.7bn for the 12 months to mid-September, as stores across Europe and North America resumed normal trade.

The budget fashion retailer accounted for close to half of ABF's group revenue for the year, which increased 22% to £17bn. The group increased its divided per share 8% to 43.7 pence.

Penneys, which trades as Primark in Northern Ireland and internationally, saw a signficant increase in customer footfall, and like-for-like sales and market share in the UK were "broadly in line" with pre-Covid levels.

The company saw weaker like-for-like sales in continental Europe, blaming cautious customer sentiment, but improved its full-year adjusted operating margin to 9.8%.

In Association with

Primark, which just reopened its flagship store in Belfast following refurbishment necessitated by a fire, continues to build digital capability with a new UK website and a click-and-collect trial in 25 British stores, having been defiantly physical retail-only until now.

George Weston, CEO of Associated British Foods, warned however that Primark faces "substantial and volatile" input cost inflation that will affect its results for the present financial year.

"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," he said.

"As a result, in the current financial year, we expect significant growth in group sales from pricing in food, as well as from some pricing and from space expansion at Primark.

"Our outlook remains unchanged. We continue to expect group adjusted operating profit and adjusted earnings per share to be lower than the financial year just closed," he added.

ABF saw 10% sales growth in its food division,  which includes Twinings tea, Jordans cereals, Kingsmill bread and Ovaltine drinks, with improved adjusted operating profit for its sugar, agriculture and ingredients businesses.

The group also announced a £500m share buyback programme to be completed during this financial year.

(Pic: Leah Farrell/RollingNews.ie)