Associated British Foods Plc (ABF) says it expects to report strong first-half profits, boosted by strong growth in Agriculture and Grocery businesses and at its Primark discount clothing stores.
Like-for-like sales at Primark stores were up four percent in the past 26 weeks.
Sugar subsidies
ABF's sugar profits continue to be hit by the European Union's 2005 decision to cut sugar subsidies after criticism from the World Trade Organization.
While its sugar profits have fallen again, ABF which makes the food brands such as Silver Spoon sugar said it had seen "strong growth" at its other businesses.
Higher commodity prices meant the group’s agriculture business had “performed extremely well”.
Bread business
As well as higher bread profits, the grocery division benefited from a strong performance from Twinings, Ovaltine and from the Australian bakery business.
The group said that there had been a “substantial” improvement in its bread baking business as it was able to pass on higher wheat prices.
ABF will release its half-year results for the six months to 1 March on 22 April.
February 25, 2008