British fashion retailer Primark has reported a strong sales increase of 22% thanks to more sales space and warm weather, its owner Associated British Food (ABF) has reported.

ABF said more retail selling space and increased sales at new outlets also drove growth at the discount retailer, which has just announced plans for a 1,393 sq m (150,000 sq ft) store in Birmingham's Pavilions shopping centre slated for next year.

ABF's retail operations saw a 17% sales increase for the 40 weeks to 21 June 2014.

However, the group's sugar business was cause for concern - down 20% for the 16 weeks to 21 June.

ABF said this was driven by substantially lower sugar prices, weaker EU sales volumes and lower sugar production in North China.

Overall, total group sales rose by a modest 3% in the quarter, but that hasn't stopped the company from strengthening its adjusted outlook.

"Full year adjusted earnings per share are now expected to be ahead of last year, with better profit progress in retail, grocery and ingredients offsetting the adverse effects of lower sugar prices and the strengthening of sterling," said ABF.

ABF shares dropped 2% in early morning trading to 2,939.85p.