UK: Associated British Foods raises second-half outlook

UK food company Associated British Foods (ABF) has raised its second-half earnings guidance.

ABF, which makes Silver Spoon sugar and Twinings Tea, had previously said that its second-half profit growth was unlikely to be as strong as in the first half.

In a trading update this week, however, the company gave a more positive outlook.

“Most of our businesses have made good progress and we now expect operating profit growth to be broadly the same as the first half,” ABF was quoted by Reuters as saying. 

The company cited improvements at its British Sugar business, its Australian-based George Weston Foods, and its UK-based Primark clothing chain.

Analysts are expecting ABF to report pre-tax profits of around £465m (US$737.9m) for the year to 13 September, compared with £430m a year earlier, reported Reuters.