Primark boosts AB Foods profits

By GRAEME EVANS AND GARETH MACKIE
Published on 10/09/2012 19:37

PRIMARK’S budget clothing continues to be popular with shoppers, helping owner Associated British Foods to yesterday predict its full-year profits will be “substantially ahead” of last year’s haul.

Sales at Primark will be up 17 per cent year-on-year, but AB Foods – which makes Kingsmill bread, Ovaltine drinks and Twinings tea – will book a £100 million writedown on its Australia meat unit.

Shore Capital analyst Darren Shirley, who forecasts group profits of £970m for this financial year, described Primark as “possibly the most potent retail format in the UK and increasingly Europe”.