Primark's ultra cheap fashion just saved AB Foods from posting some shocking results

People across the world are going crazy for ultra cheap fashion at Primark, where you can buy clothing items for as little as £1.

It's popularity is growing so much that it essentially saved its parent company Associated British Foods from posting some terrible results for the 24 weeks ending February 28, 2015.

AB Foods, which also produces and sells food items, revealed in a regulatory statement that Primark sales rocketed by 15% ahead of last year. It added that trading was strong in the stores it opened over the last 12 months across Europe.

It said several of these stores now regularly feature in Primark's top 20 stores by annualised sales including Berlin-Alexanderplatz, the new store in Cardiff, Stuttgart, Cologne and, following its entry into France, Marseille and all three stores in Paris.

This effectively saved the period for AB Foods.

Elsewhere it revealed that sugar sales plunged as "revenue in our food businesses was lower than last year primarily because of food commodity price deflation, particularly in sugar."

"This is a sound trading result with significant progress made in operating profit by Primark, Agriculture and Ingredients, and further improvement in Grocery's margin," said George Weston, Chief Executive of AB Foods.

"As expected, profitability at AB Sugar was substantially lower as a result of much weaker EU sugar prices. Primark's performance was driven by significant expansion of selling space and superior trading by the stores opened in the last 12 months and plans for its entry into the north-east of the US are well advanced."

Overall the group posted a 1% rise in group revenue to £6.2 billion while adjusted profit before tax fell 4% to £450 million.

"Our trading outlook for this financial year is unchanged. Primark's European expansion and sales growth continues and plans for its entry into the north-east of the US are well advanced," said the group in a statement.

"For the full year, Grocery, Ingredients and Agriculture will make further progress in operating profit and, as previously stated, low EU sugar prices and continued weakness in the world sugar price will result in a large reduction in profit from AB Sugar compared with last year. We also expect a much lower underlying tax rate for the full year compared with last year's rate."