Associated British Foods, the Primark budget fashion clothing stores owner, said today that its first-half adjusted operating profit would show good growth.
The London-based AB Foods, 55% owned by the family of CEO George Weston, said strong growth in its agriculture, grocery and Primark divisions would offset the expected, and previously reported, decline in sugar.
The group added its adjusted earnings per share will show good progress as higher financing costs from recent investments will be largely offset by a lower tax rate.
Primark's 173 stores saw sales and profits substantially ahead of last year, reflecting a rise in retail selling space and a 4% rise in like-for-like sales, with the group adding that Christmas trading was ahead of its expectations.
However, sugar profit in the UK and Poland will be much lower due to support price cuts under the European Union sugar regime changes, while profits at Illovo, where the group owns a 51% stake, will be lower after sugar production was hit by heavy rainfall in southern Africa.
The group was giving a trading update for its half-year results up to March 1, which the company is set to announce on April 22.
