Primark parent sees margins slip

Primark owner Associated British Foods is pencilling in a robust rise in profits in the six months to March.

Total Primark sales are set to be 11% up at constant currency, and 21% ahead at actual exchange rates.

However, ABF said margins will take a hit from the collapse in the value of the pound.

“The full effect of sterling weakness against the US dollar on Primark’s purchases will result in a greater margin decline in the second half because our currency hedges were at more advantageous exchange rates in the first half,” the company said.