Penney's operator records profits of €1m a day as revenues soar to €693 million

Gordon Deegan

The firm which operates the Penney’s chain of outlets here last year recorded daily average pre-tax profits of more than €1m.

New accounts lodged by Primark Ltd show that the company recorded a 20-fold increase in pre-tax profits to €394.22m in the 52 weeks to the end of September 17th, 2022.

The accounts show that revenues from Penney’s Irish retail revenues last year increased by €210.8m or 44pc rising from €482.2 million to €693.07 million.

The €693.06 million in revenues for the 52 weeks work out at the average weekly revenues of €13 million for the Irish network of Penneys stores.

The directors state that “Irish store trading performance was strong in the current year as the firm recovered from Covid-19 in the prior period”.

The accounts disclose that the company paid out dividends of €475 million.

The firm recorded operating profits of €369.82 million and net finance income of €24 million resulted in the pre-tax profits of €394.22 million.

The company recorded a post tax profit of €341 million after paying corporation tax of €52.4 million.

Primark opened its first store in Dublin in 1969 under the name Penneys and today operates in over 400 stores globally with the firm aiming to have 530 stores open by the end of 2026.

The directors state that they intend to spend over €250 million on the Irish market over the next nine years including the creation of 700 additional jobs here over the next three years.

The directors state that “this investment reinforces the company’s long term commitment to Ireland, high street retail and local communities across the country".

The directors state that this investment includes a new 43,400 sq ft store at the Square, Tallaght opened last September and a relocated store in Dundrum that opened in June 2023.

The overall revenues for Primark Ltd last year increased by 34 per cent from €2.36 billion to €3.174 billion.

The pre-tax profits of €394.22 million compare to pre-tax profit of €18.93 million in the prior year.

The bulk of revenues were made up of intercompany supplies of inventory at €1.8 billion, the Irish retail revenues of €693m and revenues of Primark Way franchise income of €670.05 million.

The Primark Way franchise is a business format which is developed and run from Ireland and provides Primark intellectual property, know-how and services to Primark businesses overseas.

The 154 per cent increase in Primark Way franchise income was due to the recovery from Covid-19 related store closures across the world.

The profit last year takes account of non-cash depreciation costs of €65.85 million and non-cash amortisation costs of €12.66 million.

Numbers employed by the firm last year increased by 208 from 6,275 to 6,483.

Staff costs increased from €233.8 million to €248.24 million. Directors’ pay last year totalled €5.54 million while directors also received €1.49 million under long term incentive plans.

At the end of September 18th last, Primark Ltd’s accumulated profits stood at €1.24 billion.

The firm’s cash funds increased from €13.64 million to €21.48 million.