Primark-owner Associated British Foods said it expected a significant rise in annual profit, when reporting a 17 per cent rise in first-quarter sales boosted by its discount fashion retailer chain.
The London-based group, which markets Silver Spoon sugar, Twining tea and Ovaltine drinks, said it expected good revenue growth and a significant rise in operating profit in the year to September and was confident of a good rise in earnings.
First-quarter results for the 16 weeks to January 2nd were led by its 196-strong Primark store chain which saw overall sales up 19 per cent due to new store openings and "very good like-for-like sales growth" particularly in Britain and Spain.
Primark trades as Penneys in Ireland.
"Trading results for this period were very encouraging and ahead of our expectations... We expect good revenue growth and a significant increase in operating profits this year," the company said today.
In November, the group, which is 55 per cent owned by the family of chief executive George Weston, beat forecasts with a 5 per cent rise in 2008-09 earnings and forecast good sales and profit growth in 2009-10.
In December, it said trading in the first two months of its current year was encouraging and ahead of expectations, adding it was confident earnings would grow this year.
Reuters