Associated British Foods nudged up its full-year earnings forecast today, thanks to a strong performance at its Primark discount fashion chain and its sugar business.
The London-based group, 55%-owned by the family of CEO George Weston, said it now expected 'some progress' in adjusted earnings for the year ending September 12, compared with its previous forecast for a flat outcome.
Sales at Primark stores open at least a year were set to rise 7%, it said in a statement, up from the 5% reported in the first half of its financial year.
Primark accounts for nearly a third of group profit and has branched out from Britain to open stores in Ireland, Spain, Portugal, Germany and the Netherlands. It trades as Penneys here.
Swedish rival Hennes & Mauritz reported a 3% drop in underlying sales in July on the same month last year, following a 5% decline in June.
AB Foods said there would be a big rise in profits at its sugar and agriculture business as growth in Europe and South Africa more than offset losses in China.
The group, which markets Silver Spoon sugar, Twining tea and Ovaltine drinks, also said revenues and operating profit at its groceries division rose in the second half of its fiscal year.
