Penneys Parent Profits Rise to €2m Daily
Primark Reports Strong Revenue Growth, Invests Heavily in Irish Expansion
Primark Ltd has announced a robust financial performance for the past year, with overall revenues climbing by 5% too €4.1 billion, up from €3.91 billion. This growth was fueled by a diverse revenue stream, including €2.1 billion from intercompany inventory supplies, €1.25 billion in Primark Way franchise income, and €741.7 million from Irish retail operations.
primark Way Franchise: A Global Business Model
The Primark Way franchise serves as the backbone of the company’s international expansion. Developed and managed from Ireland,this business format provides essential intellectual property,operational know-how,and crucial services to Primark businesses operating across the globe.
Irish Retail Performance: Steady Amidst Challenges
despite a challenging trading environment, Primark’s Irish stores demonstrated a flat performance for the year.Directors noted that while the first half of the year saw stronger trade, adverse weather conditions impacted the second half. However, the opening of the new Bray store in Summer 2024 provided a welcome boost, partially offsetting these impacts.
Future Investment and Job Creation in Ireland
Looking ahead, Primark is committed to meaningful investment in its Irish operations. A €250 million investment program is slated to create an additional 1,000 jobs and expand selling space in Ireland by an estimated 20%. This strategic investment underscores the company’s long-term dedication to local communities across the country.
New Distribution Facility and Store Redevelopments
A key component of this investment is a €75 million distribution facility planned for Newbridge, Co. Kildare, expected to be operational within the next year. Moreover, Primark is continuing its multi-year refurbishment program for its Irish stores, with recent upgrades to Penneys O’Connell Street in Dublin and Limerick city. Further store redevelopments are planned for Portlaoise, Limerick, and Ennis in the coming months.
Financial Highlights and Global Ambitions
Primark reported a post-tax profit of €771 million, after accounting for a corporation tax charge of €109.9 million. The company also distributed €809 million in dividends to shareholders. The profit figures take into account non-cash depreciation costs of €86.53 million and amortisation costs of €45.35 million.
Employment and Staff Costs
The company’s workforce saw a slight decrease, with numbers employed falling from 7,064 to 7,054. This comprised 5,033 retail assistants, 595 retail managers, and 1,426 in central roles. Staff costs increased from €300.19 million to €319.03 million. Directors received variable payroll amounts totaling €5.12 million, with an additional €4.2 million paid under long-term incentive plans and €950,000 for compensation for loss of office.
Accumulated Profits and Global Store Network
As of September 14th, Primark Ltd’s accumulated profits stood at €1.6 billion.The company, which opened its first store in Dublin as Penneys in 1969, has enterprising global expansion plans, aiming to operate 530 stores worldwide by the end of 2026.
Positive Year Driven by European and US Growth
A spokesperson for Primark expressed satisfaction with the 2023-2024 financial year, citing increased turnover and profit driven by strong trading performance in key growth markets across Europe and the US, alongside the steady performance of its irish stores and the addition of the new Bray store.