AB Foods sales up 24%

Associated British Foods reported a sales rise of 24 per cent in over the last four months.

Rising revenue rose for the group – which owns cut-price fashion chain Primark, Silver Spoon, Twinings and Kingsmill – came despite warnings of profit falls for its sugar unit, which accounts for the company.

Sales at Primark rose 14 per cent – following the expansion of the retailer – but the firm said trading remained "resilient" although hit by weak trading in April amid poor weather.

AB Foods also warned trading conditions would toughen in coming months with higher energy and commodities prices, but it predicted profit to grow.

The firm stated: "Continued high commodity costs and substantial increases in energy prices are a significant feature of the trading environment. Difficult economic conditions are having an impact on consumer demand.

"Nevertheless, with the exception of sugar where, for well documented reasons, profit will fall short of last year, we continue to expect profit in the rest of the group to show progress in the second half."

AB Foods share price fell 4.43 per cent in the first hour of trading off the back of the news.