Primark H1 sales expected to rise 13 percent

REPORT_ Associated British Foods plc has issued an update prior to entering the close period for its interim

results to 1 March 2014, which are scheduled to be announced on April 23, 2014. Sales at Primark, part of the Associated British Foods, in the first half are expected to be 13 percent ahead of the same period last year at constant currency and, with the benefit of a stronger euro in this period, 14 percent ahead at actual rates.

The results are driven by 4 percent like-for-like sales growth and an increase in retail selling space. Operating profit margin is now expected to be higher than in the same period last year, benefiting from warehouse and distribution efficiencies and lower freight rates. Christmas trading was strong in both years.

Retail selling space has increased by 0.6 million sq. ft. since the financial year end and, at 1 March 2014, 269 stores will be trading from 9.6 million sq. ft. Company based in Dublin opened 16 new stores in the period. It expects to add a further 0.5 million sq. ft. of selling space in this financial year, bringing the net additions for the year to 1.1 million sq. ft. which is substantially more than the 0.8 million achieved in 2013.