Interim profits from Primark owner and foods group Associated British Foods came in bang in line with market expectations, with the sugar businesses sweetening the performance considerably.
Adjusted operating profit of £412m in the 24 weeks ended March 3rd was up 6% on the corresponding period a year earlier, and consistent with market expectations.
Adjusted profit before tax was up 3% to £363m on the back of 11% revenue growth to £5,766m. Adjusted earnings per share rose 5% to 34.4p.
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Net debt of £1.59bn at the end of the reporting period after net capital investment of £326m over the six month period was lower than the £1.65bn expected by the market.
Like-for-like sales growth at its clothing retail unit Primark was 2%, in line with company guidance given at the end of February.
"We expect substantial growth in both adjusted operating profit and adjusted earnings per share for the group for the full year," said George Weston, Chief Executive of Associated British Foods.
"AB Sugar's investment over recent years, its focus on maximising capacity utilisation and operational efficiency and the strength of regional sugar prices, are expected to drive the full year profit for Sugar well ahead of last year. This, together with strong profit growth from Primark in the second half, should more than offset the lower profit in Grocery and Ingredients," revealed Chairman Charles Sinclair.
The interim dividend has been hiked by 8% to 8.5p.
More to follow ...
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