Associated British Foods said it met its own first-quarter expectations as budget clothing chain Primark drove a 13% rise in group revenue. Primark owns Penneys here.
'Sales at Primark were 26% ahead of last year reflecting the increase in retail selling space and strong like-for-like sales growth. Christmas trading was ahead of our expectations,' the food and retail group said in a statement.
AB Foods, 55% owned by the family of CEO George Weston, also said sales at its agricultural unit were up 20% in the 16 weeks to January 5, with ingredients up 16% and grocery, which makes Twinings tea, Ovaltine malted milk drinks and Kingsmill bread, up 15%.
'Overall trading in the current year has been fully up to our expectations. As previously highlighted, reform of the European Union sugar regime will have a large negative effect on this year's profit,' the company said.
AB Foods' sugar operation, which makes over a quarter of group profit, have been hit by cuts in European Union support prices.
