Penneys and Primark owner posts almost 40% rise in profit as fashion retail business improves

Conglomerate's operating profit surged to €1.1bn, driven by improved trading conditions across fashion business 

The company said volumes had started to recover in its food unit after a prolonged period of inflation which forced some cash-strapped shoppers to rein in their spending. Picture Colin Keegan, Collins Dublin

The owner of fashion retailers Penneys and Primark has forecasted "significant growth" in full-year profit after reporting a 39% jump in the first half, driven by an improved performance across its fashion retail stores.

Associated British Foods (AB Foods), whose shares soared 10% in morning trading, had previously forecast "meaningful progress" in full-year profit. The shares had already gained more than 21% before Tuesday’s surge.