The British conglomerate Associated British Foods (AB Foods) has recorded a significant increase in its results in the first fiscal half-year, exceeding market expectations. The company particularly benefited from the increased demand for affordable clothing from its subsidiary Primark and a flattening inflation in the food sector. With a revenue increase of two percent to 9.7 billion British pounds (about 11.2 billion euros) in the 24 weeks until March 2, even five percent when adjusted for currency effects, the resilience of the group in a challenging consumer environment is evident.

In the retail segment, Primark was able to significantly increase both sales and results through new openings and price increases. This area contributes almost half to the group's total sales. The other segments, which range from food to additives to agricultural products, also recorded significant improvements in results. Group CEO George Weston emphasized the importance of the normalization of markets and supply chains for this development.

The adjusted result before special factors climbed by 39 percent to 951 million pounds, while net profit rose by more than a quarter to 663 million pounds. AB Foods' current results not only exceeded analysts' expectations but also led to a more optimistic forecast for the current fiscal year, in which the company now expects "significant growth" in terms of profitability and cash flow, a revision from the previously forecasted "substantial progress".

These positive news were also reflected in stock performance: On the London Stock Exchange, shares of AB Foods temporarily rose by 9.42 percent to 27.42 pounds, highlighting the strong market reaction to the encouraging business results.