Primark owner Associated British Foods said the global recovery was underway, prompting it to predict a "very good" rise in annual earnings after beating forecasts with half-year profits up 20 per cent.
The London-based food and retail group reported strong momentum in many of its businesses around the world and even Britain showed signs of consumers trading up to more expensive products which helped to boost its shares to record highs.
"The global economic recovery is strongly underway, there are strong signs in the US and China is growing strongly," chief executive George Weston said in an interview.
Shares in AB Foods jumped nearly 6 per cent to a new high of £10.17 and were trading up 5.5 per cent at £10.11 at 1114 GMT after the profits beat and the upbeat outlook prompted earnings upgrades for the full year to mid-September.
These were led by analyst Graham Jones at brokerage Panmure Gordon, which works as an advisor to ABF. He raised his annual earnings forecasts by 6 per cent to 67.5p, pretax profits also by 6 per cent to 790 million pounds, to both show a rise of 21 per cent from the previous year.
"ABF has delivered an impressive H1 performance, with strong profit growth across the major divisions... With a confident outlook, we are upgrading our full-year earnings forecasts," Mr Jones added.
Analysts added the group is benefitting from the strong recovery at its sugar and grocery businesses after heavy investment and a pickup in demand, while Primark's growth continues to outperform its high street rivals.
The group forecast very good progress in earnings for the full year to mid-September but did not give further details.
Its 196-strong Primark discount fashion retail chain, which earns a third of group profits, was driven by an 8 per cent rise in like-for-like sales, with overall sales up 19 per cent due to new openings and profits ahead 18 per cent at £144 million.
This was helped by an exceptionally strong performance from its relatively new 14 Spanish stores, and three more are set to open in its second half along with three more in the UK to make six new store openings by mid-September.
Reuters