Shares in Associated British Foods dipped this morning (10 July) after concern over its discount clothing retail business Primark took the shine off robust figures elsewhere in the business.
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ABF, the UK group behind brands including Twinings tea and Ryvita crispbread, said group revenue was up 24% during the three months to 21 June, thanks to sales growth across the business.
Sales at Primark were up 14% but the growth came due to increased selling space and ABF admitted the business, which accounts for a third of its profits, was hit by weak trading in April.
Despite a 30% jump in revenue from its grocery business and a 21% rise in turnover from its sugar unit, shares in ABF had fallen 3.65% on the news to 740p at 10:19 BST.
Looking at grocery, ABF said the success in winning price increases had boosted revenue and recovered rising raw material costs.
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By GlobalDataThe company said its World Foods business, including Patak’s, had “performed strongly”, while Allied Bakeries had seen volumes rise.
ABF’s sugar business was helped by a new business in north-east China, the company said. ABF, however, reiterated that reform of the EU sugar sector would weigh on earnings this year.
