Associated British Foods (ABF), the owner of Penneys clothing stores, today announced that annual profit was little changed after it lost money on business shutdowns.
Net income advanced to £359 million in the year ended September 12th, compared with £357 million a year earlier, the London-based company said in a statement today. Sales climbed 12 per cent to £9.3 billion.
AB Foods, whose divisions include sugar, agriculture, grocery and ingredients, said difficulties in its Chinese sugar unit and North American edible oils business curtailed profit.
Profit was affected by a £65 million loss on the closure of divisions, mainly the US packaged oil business.
In September, strong sales at the ABF's clothing chain Primark, which trades as Penneys in the Republic, led its owner Associated British Foods (ABF) to increase its full-year earnings forecast.
AB Foods, which also owns the brands Twinings, Ryvita and Kingsmill, posted underlying profits of £655 million, an increase of 4 per cent on a year earlier.
In a statement, ABF said: “It (Primark) offers good quality fashion at low prices because it purchases very large volumes and has low mark-ups, minimal advertising and low overheads. Primark’s success is also a result of its ability to respond quickly to changes in the marketplace.
Bloomberg