AB Foods profit growth held back by sugar

LONDON, April 23 (Reuters) - Associated British Foods (LSE: ABF.L - news) met forecasts with a 1 percent rise in first-half profit with a major fall in its sugar business offset by a strong performance from its Primark clothing chain and progress in its grocery operation.

The firm said on Wednesday it made an underlying operating profit of 497 million pounds ($836.12 million) in the six months to March 1.

That compares to analysts' forecasts in a range of 495-503 million pounds.

Underlying earnings per share rose 10 percent to 45.8 pence versus analyst forecasts of 44-45.2 pence.

Revenue fell 2 percent to 6.21 billion pounds.

AB Foods reiterated guidance that it expects underlying EPS for the full year to be similar to the 98.9 pence made in 2012-13.

The firm is paying an interim dividend of 9.7 pence, up 4 percent. ($1 = 0.5944 British Pounds) (Reporting by James Davey; editing by Kate Holton)