Associated British Foods today (11 July) reported a 7% increase in third-quarter sales from its grocery business, helped by parts of its UK and Australian units.
ABF said volume sales of Ryvita and Jordans cereals in the UK were up. In a short trading update for the period to 22 June, the company said its UK bread business had “successfully” taken on the contract to supply own-label bread to The Co-operative Group, which is likely to have also boosted grocery volumes. However, it provided no sales guidance on its UK bread business.
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The company said the UK retail sugar sector remained “competitive” and sales from its Silver Spoon business were down.
In Australia, which has proven a challenging market for ABF in recent quarters, the company said “recovery was evident”, with revenue “ahead” and an “improvement in profitability”.
The company’s hot drinks business, Twinings Ovaltine, has proven a robust performer. ABF said the unit “maintained its strong growth” in the quarter.
ABF’s grocery division, which accounted for 30% of sales and 17% of profits in the company’s last financial year, has seen sales increase 3% in the first nine months of the current fiscal year.
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By GlobalDataGroup sales were up 8% in the third quarter, boosted not just by grocery but by discount retail chain Primark, where sales were up 20%. ABF’s industrial sugar arm saw sales fall 15%.
