AB Foods pleased with Primark progress

Kingsmill and Ryvita maker Associated British Foods today said interim profits rose 5% after another “excellent” performance from clothing arm Primark.

The company’s grocery, ingredients and agriculture divisions also contributed to the improvement to £282m (€351m) in the six months to March 1.

The profits haul was held back by a sharp fall in profits at ABF’s sugar arm, which has suffered due to cuts in the EU sugar quota and adverse weather.

AB Foods said sugar profit may be hit further in the second half but expects the rest of the group to progress.

At Primark, revenues increased 25% to £899m (€1.1bn) as the chain claimed 10% of the market by volume – making it the UK’s second largest clothing retailer.

It has opened a steady stream of new stores in the UK, Ireland and Spain, giving it 173 shops and five million square feet of selling space.