Primark’s revenue soars 20%

Associated British Foods Plc said third-quarter revenue rose 8% as sales at its Primark clothing outlets offset a decline at the sugar business.

Primark, which trades as Penny’s in Ireland, saw revenue rise 20% in the 16 weeks to June 22, the London-based maker of Twinings tea said yesterday in a statement. Sales at the sugar division fell 15%.

The stock rose as much as 3.9%, the steepest intraday gain in more than two months, after the company said it’s on track for “good progress” in adjusted earnings per share for the full year. The company is stepping up European expansion at Primark, which sells denim shorts for €7, to tap demand for inexpensive clothing.

Primark, which does not have an online store, began in June to sell products through Asos Plc, Britain’s largest online-only fashion retailer, and plans to open its first shop in France.