Primark owner Associated British Foods beat forecasts with a 2% dip in half-year profits today as growth at its discount fashion chain and sugar sales offset tough trading in other food areas.
The group which markets Silver Spoon sugar, Twining tea and Ovaltine drinks, said it expects a recovery in second-half operating profit and so held to its flat annual earnings forecast for its year to September 2009.
AB Foods posted adjusted pre-tax profits of £275m sterling for the 24 weeks to February 28 ahead of a consensus forecast of £262m. Earnings per share were flat at 25.2 pence a share.
'We expect to see progress in operating profit in the second half of the year and, as previously indicated, we expect little change in adjusted earnings per share for the full year,' group CEO George Weston said in the results statement.
Overall group profit slipped as consumers switched to cheaper food products, but this was partly offset by strong growth in sugar profit and at Primark.
Its 187-strong Primark chain - which trades as Penney's here - reported profit up 10% to £122m on like-for-like sales up 5% as shoppers continued to be attracted to the discount fashion clothing chain in the economic slowdown, while it looked to open a seven further stores in its second half.
