Shares in Associated British Foods rose on Thursday, after it confirmed outlook for the financial year had improved after a strong performance from its Primark clothing business.
The firm became the biggest riser on the FTSE 100 on Thursday morning, after reporting that Primark’s total sales for the year were up 9 percent. Its full year financial results will now be better than forecast because of the “stronger profit delivery” from the chain.
In a trading update, the company said: “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. 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 percent ahead of last year and we continued to increase our share of the total clothing market.”
AB Foods said group revenue from continuing businesses for the 40 weeks to June 2017 was 10 percent ahead of the same period last year at constant currency and 20 percent ahead at actual exchange rates.
Revenue growth in the company’s sugar division also remained strong in the third quarter, with “the continuing benefit of higher prices and increased production from Illovo in Africa”.
Shares in AB Foods (LON:ABF) are currently up 2.91 percent at 3,007.00 (1154GMT).