Primark
Primark’s increased sales accounted for a third of AB Foods total revenueReuters

Primark's stellar year was enough to save its owner's other divisions from dwindling sales.

Associated British Foods (AB Foods) reported that the budget fashion retailer's sales were up 16% to £4.95bn for the year ending 13 September.

AB Foods chief executive George Weston praised the influence that Primark, which is set to make inroads into the US market, had on the overall brand.

Weston said: "Primark's trading success and significant expansion delivered another magnificent year."

Overall, the company posted revenues of £12.9bn for the financial year, down 3% in actual terms, with Primark contributing more than a third to its income.

On the other hand, AB Foods pre-tax profit was up by 18% to £1.02bn, but this was held back by its sugar division, AB Sugar, which saw its revenue decrease by 22% to £2.1bn.

Weston explained that a decrease in the cost of foods has had a detrimental effect: "A key influence on this year's performance has been the impact on our food businesses of price deflation in some of our major commodities.

"As a consequence the growth in revenues achieved by our food businesses in recent years has not been sustained this year."

AB Foods shares barely changed on the back of the results, dropping by less than 1% to £2,651.00 in early morning trading.