AB Foods upgrades outlook on sugar business, currency moves

LONDON, July 7 (Reuters) - Associated British Foods (LSE: ABF.L - news) upgraded its earnings guidance on Thursday, reversing a previous forecast for a decline this year, after being buoyed by an improvement in its sugar business and the weaker pound in the third quarter.

The owner of the Primark clothing chain, which also has major sugar, grocery, agriculture and ingredients businesses, said it no longer expected the marginal decline in adjusted earnings per share this year.

AB Foods added that Britain's decision to quit the European Union was creating uncertainty, but that it remained optimistic for the group's continued growth and it would stick to plans to expand Primark.

(Reporting by Sarah Young; Editing by Susan Fenton)