The company reported that underlying earnings for the half year to March 5 were, at 32.9p a share, up 8% year on year, but that its forecast rise in full year earnings would not occur thanks to lower-than-expected profits at its Primark clothing retail division. "Higher cotton prices are having an impact on our clothing retail business," George Weston, the group's chief executive, said. Credit Suisse said that there was "plenty in the statement supporting our view that there will be a step jump upwards in profits in this [sugar] division next year." Analyst Panmure Gordon said it was "watchful for an upgrade opportunity if the current strength of European sugar prices looks like persisting into next year". ABF's sugar division profit rose 27% to £108m, as a better performance at its Chinese and Spanish operations made up for weather-related hits to its UK operation, British Sugar, and its southern African Illovo business.

UkrAgroConsult