'Significant improvement in profitability' (Il Sole 24 Ore Radiocor) - London, 05 Sep - Associated British Foods, the UK agribusiness group that owns the fast fashion retailer Primark, said that it 'continued to perform well' in the second half of its financial year ending September 14.

During the period the group "has continued to perform well in the second half, delivering good topline growth, a significant improvement in profitability and excellent cash generation," said the chief executive, George Weston.

"While the British weather was not in Primark's favour this summer, robust growth in other markets and new store openings have driven good sales overall. Strong margin delivery is enabling increased investment in our product, digital and brand initiatives. Grocery and Ingredients have also grown well in the second half, in line with our expectations, and we will continue to build on this momentum. Sugar profitability this year remains ahead of FY23, however, it is below our previous expectations. This is due to a sharp fall in European sugar prices which is now expected to impact Sugar profitability in FY25 before recovering in FY26.

"Notwithstanding this shortterm volatility in Sugar, we are optimistic about the outlook for the rest of the group, which is well positioned for further strategic progress supported by continued reinvestment for the longer term," Weston added.

AAA-Web

(RADIOCOR) 05-09-24 09:11:14 (0179) 5 NNNN