AB Foods in smooth Brexit plea
PRIMARK owner Associated British Foods has joined calls for a Brexit transition deal amid fears over customs chaos as it posted a 22% leap in annual profits thanks to strong sales at its fashion chain.
AB Foods chief executive George Weston said the group, which also owns Neill’s Flour in Belfast, Twinings tea and Kin gsmill bread, was concerned about the risk of “abrupt changes” to customs procedures.
But he added that Brexit changes could also help cut imports, boost UK-sourced goods and build a better British export market.
He said: “In common with many other businesses, we share a concern about the risk of abrupt changes to the UK’s customs procedures.
“We therefore welcome the Government’s intention to have a transition period beyond March 2019 in which to implement the necessary systems and processes.”
There are nine Primark stores in Northern Ireland.
Mr Weston added: “Changes in legislation and trade agreements provide significant opportunities for the food industry to replace imported food and build export markets and, for UK agricultural policy particularly, they have the potential to benefit our group.”
His comments came as the group unveiled a robust set of annual results.
Underlying pre-tax profits surged by more than a fifth to £1.31bn for the year to September 16.
Its Primark business received a boost from the weak pound and further expansion, with revenues surging by 19% to £7.05bn, while UK like-for-like sales jumped 10% ahead.
The group has taken a hit to margins from increased buying costs caused by the pound’s fall since the Brexit vote and said this will continue into the first half of the current financial year.
But it said overall full-year margins would be flat on the past year and it added it expects to make further “progress” in earnings for the year to September 2018.
Shares in AB Foods fell more than 3% despite the annual results cheer.