Associated British Foods (AB Foods), parent company of Primark, has witnessed a substantial increase in half-year earnings. The company’s pre-tax profit rose by 37%, reaching £881 million in the six months to March. This surge is attributed to AB Foods’ strategic investments in store expansion and supply chain optimization over the years. Additionally, Primark’s performance was boosted by newly opened stores and targeted price adjustments, implemented to mitigate cost inflation.
Despite the ongoing cost-of-living crisis, consumer demand for AB Foods’ retail and food businesses remained robust, contributing to a 5% increase in group revenues. However, customers slightly reduced their purchases as household incomes continue to be affected by inflationary pressures. AB Foods’ chief executive, George Weston, expressed confidence, stating that the group is benefiting from improved business conditions and reduced shipping costs. The impact of recent attacks on container ships in the Red Sea was also minimized, resulting in only a slight delay in shipments from Asia.
