Steady trading at Associated British Foods

14th Jul 2011 07:50

Associated British Foods said its outlook for the full year is in line with expectations as its food arm and budget clothing retail chain Primark continue to perform well.In the 16 weeks to 25 June, agriculture, grocery and ingredients revenue were higher than in the same period the previous year though sugar revenues fell back, due to a crop shortfall in the UK.Sales have remained strong at Primark, with revenues up by 13%."A like-for-like sales increase in the UK and Ireland was achieved against a background of weak consumer demand," the company said, adding that Primark's trading in continental Europe has stayed strong."Operating margins are lower in the second half reflecting higher input prices and the full effect of the absorption of the UK VAT increase," the company said, also referring to Primark.