Associated British Foods reports Q3 sales rise of 13%; 'Momentum maintained'

Associated British Foods has reported a rise in group revenue of 14 per cent in the 40 week period ended 19 June 2010. In the 16 weeks to 19 June group sales were up 13 per cent.

The group said that revenue momentum in the first half of the year had continued into the third quarter. At the group's Primark stores sales in the 40 weeks to 19 June were up 17 per cent and jumped 15 per cent in the 16 weeks to 19 June.

The group's Sugar business saw the most growth, with sales rising 44 per cent in both the 16 and 40 weeks to 19 June. Sales in Agriculture rose six per cent in the 16 weeks to 19 June and four per cent in the 40 weeks to 19 June. In Groceries sales increased five per cent in the 16 weeks and rose four per cent in the 40 week period.

Sales in Ingredients were up 15 per cent in the 16 week period and increased 17 per cent in the 40 weeks to 19 June.

In an outlook statement ABF said it was on track to deliver "very good progress in earnings for the full year".

MOMENTUM MAINTAINED

RBS analysts said that the Q3 statement had shown 'momentum maintained'.

"3Q trading has continued the strong momentum reported in 1H," said Julian Hardwick, "Primark appears to be doing better-than-expected on margins, but this is offset by a weak sugar performance."