AB Foods - results slightly better than expected

Associated British Foods, who owns Primark, has announced a pre close trading statement:

Retail sales expected to be around £9.0bn, 15% ahead of sales last year with like-for-like sales growth of 9%

Good growth in Grocery, Ingredients and Sugar

Outlook for this financial year is slightly better than previous expectations of Group adjusted operating profit to be moderately ahead of last year

Charlie Huggins, who is the manager of the ‘Quality Shares Portfolio’ at Wealth Club, said: "A strong performance from AB Food's non-retail divisions has led to a modest increase to profit expectations for the year. Sales remained strong at Primark, which is impressive given the tough economic environment and the recent unhelpful weather conditions, although margins were slightly weaker than expected due to issues involving higher theft.

"Encouragingly, the inflationary headwinds for Primark appear to be abating. The group expects Primark's margins to recover strongly next year driven by lower material costs, a weaker US dollar and lower freight costs, all of which have improved in recent weeks. This should help drive a stronger profit performance next year, even if pressures on the consumer persist.

"The sales performance from Primark this year has been very solid. This is impressive given the recent demise of Wilko's and the travails of other High Street brands. It shows that the High Street isn't dead and shoppers still love a bargain, but you need a brand that resonates strongly with consumers. Primark has that. This should leave it strongly positioned whichever way the economic winds blow."

From Recipe To Retail - Unique New Club Helps Food Business Start Ups Build Brands Without Busting The Budget

Launching in March 2012, the Relish food & drink marketing club has a unique approach to helping producers to take their ideas to the next level.

Having spent many years working in brands, product development and sales throughout the food industry, Relish founders Jo Densley & Claire Hooper decided there must be a way to share that expertise with smaller foodies.

"The hefty price tag involved with hiring a consultant is simply out of reach for most start ups, particularly in these economic times," says Claire.

She went on to say: "We wanted to find a way to make the marketing & business advice needed to get a new food business off the ground - or indeed to take a fledgling brand to the next level - as accessible as possible for smaller business owners."

And so the Relish recipe was created.

Jo explains how the club works: "The Relish club will be dishing up all the tricks of the trade - from how to come up with new recipes that sell, to what makes a brand stand out, to insider info on what really makes retailers want to stock new brands. With short video guides, bite size tasks that can be done in minutes, templates to be tailored to each fledgling food brand and interviews with some amazing foodie folk who are already winning at this, we will be helping our foodie members drive their own businesses forwards, at their pace and to their own budget."

To find out more about Relish, email hello@relish-marketing.co.uk or go to www.relish-marketing.co.uk, where you can download the FREE Relish Recipe to Retail Tips Guide.