Associated British Foods (ABF) has revealed that revenue growth in its Grocery division picked up in the third quarter to 28 May and was 4% ahead of last year.
The group noted that sales benefited from price increases it implemented earlier this year, with further “pricing action” underway. “We continue to expect a recovery in the margin run-rate in our next financial year,” ABF said.
Twinings sales declined marginally with a return to more normal levels of retail demand after the Covid lockdowns last year, partially offset by new product launches. Meanwhile, Ovaltine sales were said to be ahead, led by strong performance in Switzerland, Thailand and Nigeria.
Meanwhile, sales in its Allied Bakeries unit were ahead of the same period last year but higher input costs continued to “adversely affect margins”. Westmill benefited from the improvement in restaurant and takeaway trade sales. Sales at Jordans Dorset Ryvita “continued to progress”.
ABF’s total group revenue jumped 32% to £4.1bn during the quarter. This was driven by good performances in its other food operations and an 81% jump at Primark against the same period last year when most of its stores were closed due to Covid lockdowns.
