The parent company of Primark, which opened a new store in Gloucester just before Christmas, says sales and profits are 'strongly ahead' of last year.

Associated British Foods, which operates food businesses as well as Primark, said it also expects sales and adjusted operating profit to be ahead of the pre-COVID levels.

Primark sales for the first half are expected to be well over 60% ahead of last year with an operating profit margin of some 11%.

This reflects the fact that all stores remained open and trading throughout the period except for short periods in Austria and The Netherlands.

Luggage and swimwear have performed well in recent weeks, as shoppers look ahead to the holiday season after two years of travel restrictions.

The effect of inflation on raw materials and the supply chain in Primark this first half has been mitigated by a reduction in store operating costs and overheads and a favourable US dollar exchange rate.

All ABF's food businesses have experienced increasing inflationary pressures in raw materials, commodities, supply chain and energy.

As a result, it expects some margin reduction at the half year but expects a recovery by the financial year-end.

Outlook for the full year is unchanged with significant progress expected in adjusted operating profit and adjusted earnings per share for the Group.