Primark owner upgrades profit outlook as shoppers seek holiday outfits

Associated British Foods says group sales rose by 16% with steeper prices helping to drive Primark's growth

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The owner of Primark and food brands including Twinings has upgraded its profit forecast for this year as revenues jumped thanks to inflation-fuelled price increases and as shoppers bought summer clothes.

Associated British Foods (AFB), which also owns Ovaltine as well as a sugar business, said group sales rose by 16% to 4.7bn in the three months to 27 May. Sales at Primark were up 13% to nearly 2bn.