Associated British Foods profits forecast boosted by Primark gains
Primark's strong recent financial performance has helped Associated British Foods (ABF) move further ahead of its profits forecast for the year.
The conglomerate, which alongside Primark also runs the likes The Silver Spoon Company and Twinings, says it expects its end-of-year report in November to report significant growth in adjusted operating profit.
Sales at Primark are expected to be 13% ahead of last year at constant currency, with a particularly strong surge in the UK market due to an increase in retail selling space.
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"Primark has performed particularly well in the UK where full year sales are expected to be 10% ahead of last year on a comparable basis and our share of the total clothing market has increased significantly," ABF said in a statement.
"After a good first half, third quarter trading was particularly strong in the lead up to Easter and early trading of the new autumn/winter range has been encouraging."
ABF has also announced that it's set to acquire Acetum S.p.A., one of Europe's leading producers of balsamic vinegar and other products.
Acetum exported to over 60 countries worldwide and generating net sales of €103m in 2016.