Primark stores owner Associated British Foods today posted a 3% rise in annual profit and said it expected little change in earnings in the coming year due to additional interest costs.
The food and retail group said adjusted pretax profit rose to £632m sterling in the year to September 13, compared with an analyst consensus forecast of £628m and a range of £621m to £637m.
The company, which also markets Twinnings tea, Ovaltine and Ryvita, said it was well placed to face a demanding environment in the coming year but it was not immune to a worsening economic climate.
'We anticipate some progress in operating profits over the coming year but little change in net earnings due to additional interest expense,' said Chairman Martin Adamson.
Primark, which accounts for nearly a third of group profit and has 181 stores in Britain, Ireland and Spain saw annual like-for-like sales up 4%, beating most other clothing retailers who have seen negative underlying sales.
The group plans to open four new stores in Spain in the coming year and another four in the UK, and open test stores to explore the potential in the Netherlands and Germany.
Primark is Britain's second-biggest clothing retailer after Marks & Spencer in terms of sales volumes, and M&S, also reporting today, showed first-year pre-tax profit down 34%.
AB Foods, 55% owned by the family of Chief Executive George Weston, said that its full-year dividend rose 4% to 20.25 pence.
