AB Foods sees substantial earnings rise for year

By IBTimes Staff Reporter | April 24 2012 2:32 AM

Primark-owner Associated British Foods gained as under-pressure British shoppers turned to its discount fashion stores and it benefited from high sugar prices prompting the group to forecast a substantial growth in earnings for its full year.

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The Primark chain, which accounts for around a third of group earnings, saw half-year profits ahead as shoppers looked for bargains, while profits at its sugar business rose sharply as it gained from higher prices in Britain, Spain and Africa.

AB Sugar and Primark both performed strongly, demonstrating continuing momentum. We expect substantial growth in both adjusted operating profit and adjusted earnings per share for the group for the full year, said group Chief Executive George Weston in a results statement.

The London-based food and retailing group posted a 5 percent rise in earnings to 34.4 pence for its 24-week half-year to March 3 compared to a forecast of 33.5p from a Reuters survey of eight brokers. The half year dividend rose 8 percent to 8.5 pence a share.

The group's shares, 55 percent owned by the family of the chief executive, closed at 1,215 pence on Monday.

(Reporting by David Jones)