* AB Foods sees half year operating profits growing
* Sees Primark like-for-like H1 sales up 2 percent
* Sees no slowdown in Primark, Spain strong
* Says sugar sees exceptionally strong performance
* Shares fall 1.7 percent in early trade
By David Jones
LONDON, Feb 27 (Reuters) – 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 by
a strong performance from sugar.
Western European shoppers have cut back on spending as
unemployment has risen and wage rises stagnate, but Primark
which earns a third of the group’s profits, 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, slightly below both a consensus
and a previous year’s performance of 3 percent, while its
20-plus stores in Spain saw like-for-likes up around 5 percent.
Continued…
