(Correcting to clarify the trading periods and revenue figures.)

Associated British Foods PLC said on Monday its third-quarter trading performance was in line with expectations, and, as a result, kept its outlook unchanged.

For the 36 weeks to May 28, revenue increased by 29% against the previous year to £11.93 billion. In its third quarter ended May 28, revenue rose 32% to £4.05 billion.

Third quarter sales in its Food businesses increased 10%, reflecting price actions to recover input cost inflation and volume increases in the Ingredients arm. In Ingredients, the company reported that revenue was ‘strong ahead’ of the last year, up 24% against the previous year.

Sales in its Grocery business were 4% ahead of the previous year, while AB Sugar revenue was 7% ahead of last year. AB Agri sales for the third quarter were 10% ahead of last year, with higher selling prices more than mitigating higher commodity and energy costs.

At its Primark discount fashion chain, all stores traded during the period, in contrast to last year when most stores were closed until the middle of April, it explained.

AB Foods said sales at Primark in the quarter were 81% ahead of last year as a result and year to date were 69% ahead of the comparable period a year before.

The company highlighted that like-for-like sales at Primark have been improving since the half year, and for the quarter were 9% below pre-Covid levels three years ago.

In the UK & Republic of Ireland like-for-like sales have improved markedly, while in Continental Europe performance only started to improve at the end of the quarter following the removal of remaining Covid restrictions.

Primark remains on track to deliver a full-year adjusted operating profit margin of around 10%, AB Foods said.

Having previously had no significant online presence, Primark will launch a trial of a Click & Collect service in the UK towards the end of the calendar year, the company said.

‘We have chosen a much expanded range of children’s products for this trial, which we believe has the potential to satisfy unfulfilled demand, driving footfall from both existing and new customers to deliver incremental sales in store,’ it explained.

Looking ahead, AB Foods said: ‘Our full-year outlook remains unchanged, with significant progress expected in adjusted operating profit and adjusted earnings per share for the group.’

Shares in AB Foods were down 0.5% at 1,601.24 pence on Monday in London.

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