Associated British Foods, the owner of Primark discount clothes stores, reported strong trading in its first six months of its financial year, led by Primark and its sugar business.
The London-based group, 55% owned by the family of CEO George Weston, said sugar profits were strongly ahead while sales at its Primark stores, stripping out some new openings near existing stores, rose 4% on the same period last year.
The company reiterated it saw a rise in operating profit for its financial year to Sept 2007, but weighted towards its second half, as it gave a trading statement for its half-year to March 3, the results for which will be reported on April 24.
Analysts said they expected growth in first-half operating profits helped by a better-than-expected performance from Primark's 161 stores and sugar operations in China and Poland.
The Primark low-price fashion stores, which make around one-third of group profits, opened 23 new outlets in the last six months, and will open a further eight in the second half including one in London's Oxford Street in April/May.
The group's sugar operations have been hit by cuts in sugar support prices as the EU has reformed its sugar regime, and the group reported UK profits were lower, but this was offset by higher profits from China and Poland.
The group said annual grocery profits will be lower due to a poor performance at its Kingsmill bread unit, while its food ingredient business should show good progress this year.
