Primark has undergone positive developments in the past financial year. The retailer has achieved a turnover increase of 17 percent at current exchange rates in the 2023 financial year, according to the annual report of parent company Associated British Foods Plc. As a result, turnover amounted to just over 9 billion British pounds, approximately 10.3 billion euros.
The increase in turnover is due to several factors, writes Associated British Foods Plc. The prices of some items in the range have been increased to compensate for higher costs. In addition, products were well received, the company said, there were more people in the shopping streets, new stores were opened and Primark’s website has been improved.
Primark also had to deal with the influences of the weather on sales. For example, the summer of 2023 was characterized by heat waves in certain parts of Europe, while in other places very bad weather prevailed. The warm start to autumn also had an impact on sales, but Primark indicates that it has benefited well from the ‘core products’ in the range.
Primark results better than expected in 2023
Not only did turnover increase, the operating result also increased significantly. Operating income shows an increase of 30 percent, bringing the core figure to £717 million. Converted into euros, this is 825.5 million euros.
Associated British Foods indicates that Primark’s results were better than expected at the start of the financial year. Inflation is putting pressure on consumer purchasing behavior, but due to the generally low prices at Primark, this can also be an advantage for Primark. The retailer indicates that it has only partially passed on the increased costs to the customer and thus wants to keep prices low.