Farming & Food

Penneys owner beats estimates with 3% jump in profits

Associated British Foods reports better than expected first-half results

Primark’s new Italian store in Milan, which opened last week. Associated British Foods is expanding its Primark budget-clothing chain to new regions and upgrading existing space to help counter a profitability slump in its sugar business. (Photograph: Alessia Pierdomenico/Bloomberg)

Tue Apr 19 2016 - 07:37

Associated British Foods, owner of the Primark clothing chain, maintained full-year guidance after it beat forecasts with a 3 per cent rise in first-half profit. The group, which also has major sugar, grocery, agriculture and ingredients businesses, said on Tuesday it made an underlying operating profit of £486 million in the six months to February 27th. That compares to analysts' average forecast of £480 million, according to Reuters data. The firm said the results demonstrated underlying progress for all its businesses in the period despite currency pressures.

AB Foods said the underlying trading outlook for the group for the full 2015-16 year was unchanged. The group maintained its forecast of a marginal decline in adjusted earnings per share from the 102 pence made in 2014-15.

Reuters

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