Sugar squeezes Primark owner

BOOMING sales at Primark failed to sweeten shareholders in parent company Associated British Foods after it issued a profit warning for its sugar business.

Shares fell 4.1pc as the world’s second-largest producer of sugar and food ingredients said lower prices in the EU had caused sales in the division to plunge 17pc in the three months to June 23.

An EU quota introduced in October allowing sugar firms to produce and export as much as they want has led to an oversupply in the market and put pressure on prices.

‘As a result, our expectations for sales and profit at AB Sugar, both for this financial year and next, are lower than previously expected,’ ABF warned.

In contrast, Primark’s sales continued to grow, rising by 6pc.