Primark clothing boost for parent ABF

A STRONG performance at budget clothes retailer Primark drove sales 14 per cent higher at parent Associated British Foods (ABF) in the first 40 weeks of the financial year.

The group, which also owns household brands Kingsmill, Silver Spoon and Twinings, said Primark was enjoying an "excellent year" following impressive trading in Spain and further progress in continental Europe.

Primark, which grew sales 17 per cent in the 40 weeks to 19 June, plans to open five stores by the end of next month, taking its store count to 203.

Its grocery arm delivered revenues growth of 5 per cent in the most recent quarter, helped by good results from Twinings Ovaltine after a poor showing last year and a strong performance by Kingsmill in the face of strong competition.

AB Foods added that quarterly revenues from its sugar division were 44 per cent ahead of last year due to the acquisition of Spanish firm Azucarera and an excellent season for its UK business, which produced 1.3 million tonnes of sugar.

The relaunch of Indian food brand Patak's and a promotional drive for Jordans and Ryvita boosted growth in its "Whole Foods" business.

The company has consistently bucked the recession with a string of forecast-defying sales results.

"Trading for the group since the half year remains on track to deliver very good progress in earnings for the full year," an ABF spokesman said.