Associated British Foods reported first- half earnings that slightly beat analyst estimates as growth at its Primark budget-fashion chain more than offset an industrywide drop in the price of sugar.
Adjusted earnings per share in the six months through 28 February rose to 46.1 pence from 45.8 pence a year earlier, the London-based company said in a statement. Analysts were predicting adjusted profit of 45.8 pence a share, according to the average of seven estimates compiled by Bloomberg.
AB Foods has come to rely on Primark for growth as a record in global supply has led to a slump in profitability at its sugar-production business. The retailer is expanding across Europe and into the US, with its first outlet there set to open in Boston in the fall.
Primark’s first-half adjusted operating profit rose 11 per cent to £322 million ($479 million), excluding the impact of currency fluctuations. The unit reported a 15 per cent boost in sales in the period, although like-for-like sales were unchanged, held back by northern Europe’s warm autumn weather and the impact of new stores on existing ones. Primark’s expansion into the US is “well-advanced,” AB Foods said.
Bloomberg News, edited by ESM
