Primark boosts AB Foods outlook
ASSOCIATED British Foods forecast higher results this year than last, driven by an “outstanding” performance from subsidiary Primark.
Adjusted operating profit will be higher than last year, while earnings per share for the first half will be “substantially” ahead of last year, AB Foods said this morning in a trading update.
Primark sales in the first half of the year were “exceptionally strong”, and are expected to be 23 per cent ahead of the same period last year, driven by strong like-for-like sales growth.
Operating profit margins at Primark were also ahead, reflecting lower cotton prices and better trading.
AB Foods also noted stabilisation in the performance of its sugar, grocery and ingredients businesses.
The group left its full-year expectations unchanged, and earnings growth for the full year will be weighted towards the first half.