Associated British Foods reported a 16 per cent rise in half-year profits today and expected a further profits advance for the full year.
The London-based foods group, which also owns Primark discount clothing stores, said pretax profit rose to £268 million in the 24 weeks to March 5th, in line with analysts forecasts of £260 million to £272 million.
"Although the operating environment will be no less demanding in the second period of the year, we nevertheless expect to report good progress in operating profit for the full year," the group said in a results statement.
It warned that net investment income from its cash pile will be significantly lower than in the corresponding period of the previous year, however. Investment income in the half-year fell to £11 million from £14 million previously.
The Kingsmill bread and Mazola cooking oil group, 55-per cent-owned by the Weston family, is looking to use its cash to make acquisitions to cut its dependence on sugar before EU sugar-regime reform which is set to cut prices from 2006.
New chief executive George Weston said the results reflected the group's recent acquisitions and good progress from its existing businesses.