Primark made a loss in the Czech Republic – Novinky

The Primark chain opened its first store in the Czech Republic in June 2021 in Prague, followed by another in September 2022 in Brno. This winter, the company plans to open a new store in the Metropole Zličín shopping center in Prague, its representatives said. Primark is part of the multinational group Associated British Foods.

“As the business has faced some of the effects of inflation, Primark has decided not to pass on all increases in material costs, supply chain costs and staff costs to customers they have As a result, the profit margin for the year has decreased year on year,” Primark representatives said on Monday.

Last year Primark employed an average of 460 people in the Czech Republic, in the financial year 2021/2022 it was 314 employees. Personal expenses, in addition to salaries also including social contributions, health insurance and employee benefits, increased by almost 87 percent year-on-year to 190.07 million crowns.

In the financial year 2022/2023, the chain operated 432 stores in 16 countries, which is 24 stores more than the previous year. The company says it employs more than 70,000 people.

Associated British Foods (AB Foods) adjusted operating profit rose 39 percent to 951 million pounds (about 27.9 billion crowns) in the first fiscal half of this year. Margin recovery in retail sales and food operations contributed to the growth, she said earlier business. The Primark chain has the largest share of the group’s profits.

Primark’s operating profit rose 46 per cent to £508m. Revenue rose 7.5 per cent to £4.5 billion. Continued growth in the sales area contributed to this.

AB Foods focuses on food processing and retail sales. Its division is among the world’s largest producers of sugar and baker’s yeast and is a major producer of other ingredients, including emulsifiers, enzymes and lactose. Its food brands include Mazola, Ovaltine, Ryvita, Jordans, Kinsmill and Twinings. It has significant business operations in Europe, Africa, America, Asia and Australia, and has 133,000 employees in 55 countries.