DISCOUNT CLOTHING chain Primark, which trades as Penneys in the Republic, helped boost first-half earnings at its parent company Associated British Foods (ABF).

In a trading statement yesterday, the London-based group said it expects earnings for the half year to February 27th to be substantially ahead of last year, driven by growth in its Primark and sugar businesses. It is also confident of “good progress” in full-year earnings, it said. The Primark chain, which will have 196 stores by the end of February, saw like-for-like sales jump 8 per cent in the first half. This was driven by an increase in retail selling space, and an “exceptionally strong” performance by its Spanish stores.

“Primark’s momentum is improving; it’s an amazing performance especially since January and February were hit by terrible weather in the UK and the current retail environment,” said ABF finance director John Bason.

Five new Primark stores were opened during its first half, and it reopened its store in Waterford following a substantial extension. It plans to open a further six stores before the year-end, with three in both the UK and Spain. The chain has also agreed to buy 10 BHS stores, which it plans to reopen in the next financial year after refitting has been carried out.

First-half profits in ABF’s sugar division were also ahead of last year, reflecting a recovery in sugar prices in China and an “excellent” performance in Europe.The group’s grocery division also saw profits grow strongly. (Additional reporting Reuters)