Primark owner Associated British Foods (LON:ABF) saw profits jump in the first half of the year, alongside a more optimistic outlook on the year ahead.
Group revenue rose 19 percent to £7,296 million in the 24 weeks to March 4th, with adjusted operating profit up 36 percent to £652 million.
The group, whose business engages in the grocery, sugar, agriculture, ingredients and retail sectors, saw adjusted profit before tax also take a hefty boost, up 35 percent to £624 million.
The company said its sugar business, AB Sugar, had benefited from a rise in sugar prices and “significant savings” achieved as a result of performance improvements.
Its retail brand Primark also had a strong six months, with revenue increasing by 12 percent on a comparable basis with last year at constant currency.
George Weston, Chief Executive of Associated British Foods, said:
“The underlying growth of the group at constant currency was strong in the first half. Primark delivered a substantial increase in selling space which, together with its strong consumer offering, contributed to a further increase in our share of the total clothing market. Furthermore, we achieved a more acceptable rate of return in Sugar and further good progress was made by our Ingredients and Grocery businesses.”
Shares in AB Foods are currently up 2.24 percent to 2,779.00 (0914GMT).
