OH SUGAR! Why Primark's half year wasn't so sweet
By Simon Hacker | 29th April 2025
It's not quite coming apart at the seams, but Primark's UK performance is showing some strain, with the latest half-year results to March 1 2025 from owner Associated British Foods PLC (ABF) revealing how sales fell by 4% and market share dipped below 7%.
To help balance the books, Primark's performance further afield showed promise: the USA (where Primark plans 60 stores by next year) saw retail sales go up 17% while takings in central and Eastern Europe climbed 22%.

Primark's dataset sits within some far larger numbers from ABF and overall the global PLC took a 10% hit on profits with a final innings of £845m set against £951m from the corresponding period to March 1 2024. Group sales for the six months to March 1 meanwhile fell by 2% to £9.5bn, with Primark's revenue growing 1% to £4.5bn.

The chief culprit was sugar – ABF's Sugar division produces a range of sugar, fuels and other products from sugar cane, sugar beet and wheat in Africa, the UK and Spain and employs 29,000 people in 19 plants across eight countries, turning out some 4.5m tonnes of sugar annually. On this specific, ABF, which owns Twinings, Ovaltine, Patak's, Kingsmill, Jordans, and Mazola, as well as Silver Spoon and Billington's, is currently braced against the impact for H2 2025 of Donald Trump's tariff measures.
George Weston, ABF Chief Executive, said: "These results reflect a robust performance in four of our five divisions. I am frustrated with the results in our Sugar business, but we are clear on what needs to be done by way of operational and regulatory solutions to improve financial performance."

He added: "Primark delivered good growth in Europe and the US, with continued consumer caution in the UK. Primark's profit and margin delivery was strong and our low-cost operating model is working well. Our focus remains on sharp execution of our key growth initiatives across product, brand, digital and new market entry."
ABF's Grocery and Ingredients businesses performed well, the company said, and retained a positive outlook while the Group "remains well positioned and our strong balance sheet enables continued investment to deliver long-term sustainable growth."
Amid the details of Primark's sales period, activity over Christmas helped to offset the final results, with growth seen in menswear, kidswear, and nightwear, while collections by such influencers such as Paula Echevarría and Rita Ora sold well.
Primark also saw the introduction of a new click and collect service during the period in a drive to improve its omnichannel capabilities, with this facility now available at the chain's Gloucester store on Eastgate Street, although the launch fell outside the trading period revealed here.
Alongside Gloucester, Primark says it now has click and collect available in more than 150 stores.

The retailer is also looking at opening in eight new locations, as well as two relocations and one store expansion. Together, these are expected to add 4% to overall sales growth. In its forecast, ABF foresees modest sales growth for the year, buoyed by store rollouts in Europe and the US.
Reflecting on consumer caution in the UK, Mr George Weston added: "Primark's profit and margin delivery was strong and our low-cost operating model is working well. Our focus remains on sharp execution of our key growth initiatives across product, brand, digital and new market entry."
In a separate statement and looking ahead amid current geopolitical instability, ABF said: "Sentiment is unlikely to improve as markets continue to face uncertainty and instability following recent tariff announcements by the US, retaliatory actions by China and the risk of further tariff trade wars."
The company added: "Consumer confidence could deteriorate further as a number of countries, including the US, face the risk of recession that could increase individuals' debt problems."
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