Good trading at Primark and the continued weakness in sterling acted as tailwinds for Associated British Foods (ABF), which pushed group revenue in the 40 weeks to 24 June, up by a fifth on the same period the year before. Constant-currency turnover was up by a tenth, and the sterling boost is expected to weaken in the final quarter.
A 13 per cent increase to average selling space at Primark helped deliver the same proportional increase in sales. But a strong US dollar has made input costs more expensive, which squeezed the operating profit margin from 11.7 per cent to 10 per cent.
Higher prices and increased production in Africa sweetened revenue growth in the sugar business. In the ingredients segment, another extension to its enzyme factory in Finland was completed during the period, which is expected to increase fermentation capacity by 40 per cent.
