Primark-owner Associated British Foods said trading in the first two months of its financial year was in line with its expectations on Friday as it forecast sales and profits growth for its full year.

The London-based group, which sells Silver Spoon sugar and Twining tea as well as running discount fashion chain Primark said the outlook for economic growth in developed economies around the world is subdued and will remain so in the medium term.

The company was giving a trading update at its annual general meeting.

Last month, the group reported a 2 percent rise in annual earnings per share to 74.0 pence for its year to September 17, as a big boost in sugar profits offset a fall at Primark as the retailer absorbed most of the sharp rise in cotton costs.

(Reporting by David Jones)