Primark stores owner Associated British Foods has posted a 3 per cent rise in annual profits but added it expected little change in earnings in the coming year due to additional interest expenses.
The London-based food and retail group reported adjusted pre-tax profits rose to £632 million sterling in the year to September 13th, compared to an analyst consensus forecast of £628 million and a range of £621 to £637 million.
The company which also markets Silver Spoon sugar, Twinning tea, Ovaltine beverage and Ryvita crispbread said it was well placed to face the demanding environment in the coming year but it was not immune to a worsening economic climate.
Primark, which accounts for nearly a third of group profit and has 181 stores in Britain, Ireland and Spain saw annual like-for-like up 4 per cent, beating most other clothing retailers who have seen negative underlying sales.
Primark is Britain's second-biggest clothing retailer after Marks & Spencer (M&S) in terms of sales volumes.
AB Foods, 55 per cent owned by the family of chief executive George Weston, announced its full-year dividend rose 4 per cent to 20.25 pence.
AB Foods shares have outperformed the FTSE index by 11 per cent in 2008 but has lagged the DJ European food and beverage index by 8 per cent.
Reuters