British food processing and retailing company Associated British Foods (ABF) has released a trading update for the 16 weeks leading up to 4 January 2025, revealing a mixed performance with overall revenue down by 2.2% at the actual currency rate.
Primark, the group's clothing brand, experienced 2% sales growth, driven by strong performance in several international markets.
Despite global growth, Primark's sales in the UK and Ireland faced a downturn, with a 4% decline in the UK and a 6.4% drop in like-for-like sales.
The challenging retail environment and weaker autumn trading overshadowed the increase in like-for-like sales during the 2024 Christmas period.
ABF's womenswear category was notably impacted, with cold weather and seasonal clothing sales suffering, although sales were robust in performance, leisure and nightwear.
The company stated: “In Spain and Portugal, which accounted for approximately 18% of sales, our sales grew 9%, reflecting good underlying growth in both markets and a strong contribution from recently opened stores.
“In France and Italy, which accounted for approximately 16% of sales, our sales grew 5%. In France, growth was driven by recent store openings. In Central and Eastern Europe, which accounted for approximately 3% of sales, our sales grew 22%, driven by recent store openings.
“In the US, which accounted for approximately 5% of sales, our sales grew 17%. In the UK and Ireland, which accounted for approximately 45% of sales, our sales declined 4% with like-for-like sales down 6%.”
Primark's online presence through its Click & Collect service in the UK has shown positive results, increasing customer awareness and and bringing accessibility to the product range, especially for those shopping in smaller stores.
Northern Europe also reported growth, with a 3% increase in sales and a 4.9% rise in like-for-like sales.
The brand is making good progress with its store rollout programme in Europe and the US, which contributed approximately 4% to the total sales growth for the period.
For 2025, Primark aims for low-single-digit sales growth, largely driven by this expansion in growth markets.
Other divisions within ABF showed varied results. The grocery segment, with brands such as Twinings and Ovaltine, achieved 1% growth due to strong international performance.
The Ingredients division posted a 4% increase, while the sugar and agriculture segments saw declines of 2.1% and 4.1% respectively at constant currency rates.
