Primark has bucked the trend for low-cost retailers as parent company ABF reported higher annual revenues supported by inflationary price increases.

ABF, which also owns grocery and ingredient businesses making products such as Kingsmill bread and Twinings tea, said the 15% increase in sales to £19.8 billion was "largely due to price increases across our businesses to mitigate high levels of inflation". This was the case for both grocery items and fast fashion with high prices expected to persist, particularly in food.

Pre-tax profits for the year to September 16 were 25% higher at £1.34bn, with chief executive George Weston saying the company performed very well despite facing "significant economic challenges".

READ MORE: Cost of living: Food inflation falls to single digits

Chris Beckett, head of equity research at Quilter Cheviot, said the food businesses coped well in the high inflationary environment by passing on the majority of its costs, while the retail business has weathered the cost-of-living crisis "comparatively well".

"Where we have seen discretionary spending for low-end retailers come under pressure elsewhere, this has not been the case with Primark and it has delivered impressive numbers given the environment it is currently operating in," he added.

Primark has opened 27 new stores this year and has begun promotional collaborations with celebrities such as singer Rita Ora to attract more customers. The chain is also trying to sell clothes online for the first time and has expanded a click and collect service to a third of its UK stores.

READ MORE: Food prices fall for first time in more than two years

Mr Weston said the group has so far been encouraged by its online and click and collect efforts, but will have to collect more data to determine whether these will be profitable ventures. And while consumer demand remains uncertain, Primark is "as well-placed as it has ever been".

"At the beginning of the year we implemented selective price increases partially to protect profitability, on the grounds that the significant input cost inflation was temporary," Mr Weston said of Primark. "That careful pricing delivered as intended, with customers continuing to shop with us enthusiastically."

Shares in ABF closed yesterday's trading nearly 7% higher at 2,250p, an increase of 144p.