By Maryam Cockar

Primark-owner Associated British Foods PLC (ABF.LN) said Monday that it expects to report sales growth at all of its divisions for the first half of fiscal 2018, apart from sugar division, which recorded an expected fall in revenue.

For the six months ending March 3, the food-processing and retail group said it expects adjusted operating profit to be in line with the same period last year, with a higher margin.

Sales at clothing-retail business Primark are expected to be 7% ahead of the previous year at constant currencies and 9% ahead at actual rates due to increased retail space, the company said.

Like-for-like sales are forecast to have fallen 1% due to unseasonably warm weather in October, AB Foods said.

The company said it expects profit growth from Primark to accelerate in the second half of the year as margins improve.

For the full year, AB Foods said it keeps its outlook unchanged, expecting progress in both adjusted operating profit and adjusted earnings per share.

AB Foods is due to report first-half results on April 17.

Write to Maryam Cockar at maryam.cockar@dowjones.com

(END) Dow Jones Newswires

February 26, 2018 02:47 ET (07:47 GMT)

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