Associated British Foods, the home of Twinings Tea and the Primark fashion chain, has posted a 10% increase in group revenue (at constant exchange rates) in the 40 weeks to June 24, according to a trading update issued by the group.
At actual exchange rates, the group saw a 20% increase in the period.
The group said that its third quarter performance was 'strong', with revenue growth of 13% at constant currency and 20% at actual exchange rates.
It said that the results reflect a 'material translation benefit from the devaluation of sterling following the result of the UK referendum on EU membership in June last year. At current exchange rates, the translation benefit will be significantly less in the last quarter of our financial year'.
Revenue Growth
Its grocery business 'achieved further revenue growth' in the third quarter, with Twinings Ovaltine and George Weston Foods performing strongly in Australia, while in the UK, it noted that additional competition in the bread market had a negative impact on the division's performance there.
In sugar, revenue 'remained strong' in the third quarter, while at its AB Agri division, revenue growth was 'slightly ahead of that achieved in the first half'.
Its Primark business remains the main breadwinner for the group, with sales 13% higher than at this time last year, at constant currency rates, and 21% ahead at actual currency rates.
'Third quarter trading was particularly strong in the lead up to Easter, benefiting from comparison with results last year that were affected by poor weather and an earlier Easter holiday,' it said.
'As a consequence, like-for-like sales in this period were better than the first half of the year. Primark performed particularly well in the UK where year to date sales are 9% ahead of last year and we continued to increase our share of the total clothing market.'
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
