Penneys’ Irish operating company reports 6% profit increase [Video]

Profits at Penneys‘ Irish operating company increased by nearly 6% last year to €416.6m.

Turnover at Primark Limited, which comprises the budget fashion chain’s retail arm as well as its ‘Primark Way’ franchise, and intellectual property assets, jumped 23% to €3.9bn.

Sales within the retail division increased year-on-year from €693.1m to €744.5m in the 12 months to the end of September, driven primarily by higher footfall.

Inter-company supply of inventory generated €2.4bn in revenue, an increase of a third (+32%) as outlets across Europe and North America required more stock. Franchise income turnover, meanwhile, increased €114.5m to €784.6m.

Primark Ltd’s gross profit margin declined, however, from 18% to 15.95 due to higher costs stemming from inflation in the price of raw materials and freight.

The company’s tax bill declined from €52.4m to €40.5m, but no dividend was paid to parent Associated British Foods after a €475m payout in 2022.

The group employed some …