Associated British Foods, the owner of Primark discount clothes stores and the Silver Spoon sugar refiner, posted a 5 per cent rise in first-half profit today but said economic conditions were difficult.
The food and retailing company said adjusted pre-tax profit was £282 million ($561 million) for the 24 weeks to March 1st, up from 268 million a year ago and compared with analysts' forecasts that ranged from 274 million to £311 million and averaged at £282.7 million.
Group revenue jumped 15 per cent to £3.71 billion pounds.
"These good results demonstrate that the group remains on track, with strong growth from Grocery, Ingredients and Agriculture and another excellent performance from Primark," chief executive George Weston said in the results statement.
The company said its businesses remained affected by economic uncertainty, with rising commodity prices and energy costs hitting consumers.
"We expect profit for the rest of the group to show progress in the second half, despite the difficult economic conditions," the company added.
Associated British Foods proposed a 4 percent increase in the interim dividend to 6.75 pence.
Shares in the company closed at 890 pence on Monday, valuing the group at around £7.2 billion.