AB Foods sees Primark sales slow

Associated British Foods today reported a 24% jump in third quarter revenues, despite slower sales growth at discount fashion chain Primark.

The sugar, retail and grocery group said Primark sales were up 14% since the start of March, compared with the 25% gain seen in the prior six months.

It described Primark’s trading as resilient against a deteriorating consumer background but said like-for-like sales were held back by weak trading in April, when comparisons with a year earlier were affected by poor weather and Easter.

Soaring food prices meant grocery revenues were up 30% in the 16 weeks to June 21. AB Foods said Twinings and Ovaltine performed strongly in the period, while Kingsmill bread business Allied Bakeries continued its recovery with higher sales volumes and an improved operating performance.