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Primark sales continue to beat the high street downturn, according to owner Associated British Foods (ABF).

In a trading update, the food-to-retail firm said Primark profits will again be "well ahead of last year" and expects eight new stores to have opened in the second half.

Like-for-like sales growth of two per cent is expected in the second half – compared to recent sales falls on the high street - despite the weak trading in April when poor weather discouraged shoppers.

In a statement, ABF said: "As a consequence of continuing growth, we will have opened a major new distribution centre at Thrapston, Northamptonshire by the end of the financial year. This will increase our UK capacity by some 50 per cent."

The company expects trading space to increase by eight per cent compared to the previous year.

For the group's sugar division, profits will be substantially lower than last year, however.

ABF said changes to the EU sugar rules and a bumper crop in China have pushed prices down.

The company's grocery unit has fared better over the year, with an improvement from Allied Bakeries.

Price increases recovered commodity cost inflation, ABF said, but warned substantial increases in energy prices remain a feature of the current trading environment.

The company will announce its results for the full year on November 4th.