Associated British Foods today (14 July) cited “strong” sales from Jordans and Ryvita as it reported a 6% increase in quarterly sales from its grocery business.
In a trading update for its third quarter, which comprised the 16 weeks to 25 June, the UK-based company said the UK grocery sector remained “very competitive with high promotional activity” among the multiples.
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Nevertheless, ABF said “effective marketing” of Jordans and Ryvita had boosted the brands’ sales. The company said a return to home baking and meant its Silver Spoon baking ingredients business had “performed strongly”.
Oriental cuisine range Blue Dragon performed “in line with expectations” after a relaunch, while Indian brand Patak’s “continued to perform well”, ABF said.
However, ABF said promotions had meant margins from its Kingsmill brand business had fallen.
In the year to date, ABF’s grocery business has increased sales by 7%, the company added.
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By GlobalDataIts ingredients arm benefitted from strengthening lactose and whey protein prices, which helped the company’s dairy proteins business.
ABF’s yeast operations traded “well” in Latin America and with its bakery ingredients customers but the company said trading conditions in Europe and North America were “difficult”.
For the quarter, ABF’s ingredients sales were up 2%. For the year so far, sales had risen 5%.
The company as a whole, which also includes discount clothing retailer Primark, posted a 7% rise in sales from continuing operations in the third quarter. Over the year-to-date, sales climbed 9%.
Shares in ABF were up 3.12% at GBP10.90 at 11:59 BST today.
