The fashion chain Primark, integrated into the Associated British Foods (ABF) group, increased its turnover by 4% in the first nine months of its fiscal year, which ends in September, to 7.577 billion pounds sterling (8.795 billion euros), as reported by the British multinational.
Adjusting for currency effects, the textile company's revenue advanced 2% compared to the same period of the previous year.
In the quarter ending in June, ABF's retail division earned 2.920 billion pounds (3.390 billion euros), 4% more than a year earlier. At constant exchange rates, the increase was 3%, while in comparable terms, also excluding changes in the scope of consolidation, a decrease of 2.2% was observed.
The company detailed that new openings contributed 5% to the quarterly turnover growth, with solid execution in its main expansion markets in Europe, the United States, and the Middle East.
By geographical areas, in the United Kingdom Primark achieved a 1% increase in sales at constant exchange rates in the third quarter, with practically flat performance in comparable sales. In continental Europe, where consumer confidence remains depressed, total turnover fell by 1% and comparable sales dropped by 3.6%.
In the United States, business performance remained irregular during the period, although three additional stores were opened, including the first in Manhattan (New York), bringing the network to 41 stores. Sales in the North American country increased by 16% in the third quarter.
Primark's franchise business, which currently includes three stores in Dubai and one in Kuwait, also registered robust performance despite the market environment.
"In a challenging consumer environment," including the impact of the conflict in the Middle East, ABF still expects Primark to achieve an adjusted operating profit margin for the full year of approximately 10%.
"While the retail environment remained complex in most markets, Primark continued to strengthen its customer value proposition, including the launch of new products, a sharper focus on price, and increased investment in marketing, especially digital," commented George Weston, CEO of ABF.
The British company confirmed last April its plan to separate Primark, its retail textile business, from the rest of the group's activities focused on food, with brands such as Azucarera or Twinings, with the aim of creating two independent companies listed on the London Stock Exchange before the end of 2027.
ABF group results
Overall, ABF obtained revenues of 14,774 million pounds (17,149 million euros) in the first nine months of its fiscal year, up 1%, with a 3% increase in the third quarter, to 5,304 million pounds (6,157 million euros).
Excluding the retail business, the food division increased its sales by 1% in nine months, to 3,115 million pounds (3,616 million euros), and in the third quarter, it raised them by 5%, to 1,043 million pounds (1,211 million euros).
In the ingredients branch, turnover reached 1,546 million pounds (1,795 million euros) in the first nine months and 543 million pounds (630 million euros) in the third quarter, representing increases of 1% and 7%, respectively.
ABF's sugar business generated 451 million pounds (524 million euros) in the quarter, up 4%, while in the accumulated nine months it totaled 1,422 million pounds (1,651 million euros), down 3%.
For its part, the agricultural division reduced its quarterly sales by 13%, to 357 million pounds (414 million euros), with revenues of 1,105 million pounds (1,283 million euros) in the first nine months, 9% below the previous year.
"The food and ingredients segments delivered solid results," commented George Weston, noting in the case of the sugar business that the duration and severity of the conflict in the Middle East have increased expectations for gas prices next year, which has affected earnings prospects in Europe.
Expected deterioration in the sugar business
Looking ahead to the 2027 financial year, ABF has anticipated "a further deterioration in the results of the sugar business," although it has specified that there are multiple factors that could significantly influence performance, both upwards and downwards, including average sugar prices in Europe; energy, fuel, and fertilizer costs; production levels in Africa; the impact of El Niño; and exchange rate variations.
Despite the considerable drop foreseen in European sugar production, the group estimates that the sugar market in Europe will continue in a surplus situation due to high inventories accumulated since 2025.
"The performance of our sugar business remains a priority for management and the board of directors. We anticipate taking further measures to reduce our cost base going forward, particularly in Europe," the company added.