Associated British Foods (ABF) has reported that strong sales from the low-price retailer Primark have been offsetting poor figures filed by the group's sugar business. It is warning that as a whole its operating profit will be down for the year.
Dublin-based retailer Primark surpassed analysts expectations over the Christmas period. Sales from the company, which trades as Penneys in Ireland, were up by 15 percent in the final three months of 2014 - when compared with the same period in the previous year.
This came after a poor Autumn period when unseasonably mild weather in the UK and Ireland hurt fashion retailers across the board.
Primark is about to enter the United States market - it has added a total of 0.5 million sq ft of floorspace since November and signed leases for eight properties in the north-east of the region.
The company has recently opened stores in France and Germany - it also operates in Spain and Portugal.
There are 37 Penneys/Primark outlets in Ireland - and 287 around the world. It was the most profitable part of Associated British Foods' global operation in 2014.
Despite Primark's strong performance, total sales for the group were down by 3 percent for the period - compared to the same four months in 2013.
The ABF group suffered a big hit on sugar, with a £128m (€166m) write-down of assets - including a £18m (€23m) sugar plant in China.
Its other interests include Twinings tea, Ovaltine and Ryvita crispbread.
