Proactive Investors - Associated British Foods PLC (LON:ABF) entered 2024 in a chipper mood as it predicted a "year of meaningful progress".
Unveiling the headway it made in its financial first quarter, ABF delivered revenues of almost £6.9 billion, up 2.8%, or 5.4% at constant currencies.
Within that number, there was a meaningful increase in the contribution from the Primark discount clothing chain (up 7.3% and accounting for £3.4 billion of sales), while the British Sugar operation also weighed in with a solid performance (up 3.8% at £825 million).
These two businesses provided a counterweight to the declining sales of the agriculture business, which were down 12.1% at £572 million in the 16 weeks ended 6 January.
Looking ahead, ABF told investors: "The group continues to trade well. We continue to look forward to a year of meaningful progress in both profitability and cash generation, with the profitability improvement being driven by a recovery in Primark margin, a marked improvement in British Sugar profitability, and by reduced losses at Vivergo."
Even at this early stage, ABF said it now feels "more confident" in the continued strong performance of both its US-focused grocery brands and, crucially, the delivery of Primark's adjusted operating margin target.