Reuters
Feb 27, 2012
AB Foods profit growth driven by Primark and sugar
Reuters
Feb 27, 2012
LONDON - Primark-owner Associated British Foods expects growth in its half year profits to be driven by its discount fashion chain which has gained as under-pressure British shoppers seek out bargain prices and a strong performance from sugar.
www.Primark.co.uk |
Western European shoppers have cut back on spending as unemployment has risen and wage rises stagnate, but Primark has faired better than most with its offer of cheap chic along the high street.
Primark's closely-watched like-for-like sales growth in its first half slowed to 2 percent compared to a consensus and a previous year's performance both of 3 percent. Overall sales are expected to be 15 percent ahead and operating margin lower reflecting the impact of higher cotton prices
The group said its half year results to March 3 will be in line with its expectations with adjusted operating profits ahead of last year and earnings a little ahead of last year. The half year results will be published on April 24.
Earlier this month, official data showed British retail sales rose unexpectedly in January. That data, a string of strong business surveys and some stabilisation in the labour market raised hopes of recovery in 2012. .
(Reporting by David Jones)
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