Primark owner Associated British Foods (ABF) has upgraded its profit forecast for the year after seeing sales rise at the retailer.

Sales increased by 13 per cent at the high street brand to almost £2 billion in the third quarter. ABF attributed the sales to “higher than average selling prices” and rising inflation.

The company noted that flagship stores performed well and that the sales of health and beauty products and accessories were strong. Like-for-like sales growth for the year to date was 9 per cent, with like-for-like sales growth in the quarter at 6 per cent in the UK and 7 per cent in Europe excluding the UK.

Four Primark stores opened in the period in Italy, New York, Spain, and Slovakia, with the latter being the first Primark location in the country. The company will continue to expand its physical footprint in the coming quarter, having signed the lease for its first store in Texas.

ABF praised the deployment of its “much-improved website” in Germany, Spain, Italy, and the US as also contributing to growth in the quarter. It has trialled click-and-collect stores during the period, which has further driven sales.

ABF said: “Primark has continued to trade in line with our expectations, with summer ranges performing well as the season started in our markets.

“The group continues to trade well. Based on current trading conditions, we now expect the Group's adjusted operating profit for the full year to be moderately ahead of last year.”

Total group sales came in 16 per cent higher year-on-year at £4.7 billion in the third quarter with strong constant currency sales growth in the grocery and ingredients segment largely driven by the necessary pricing actions taken earlier in the year to offset input cost increases.

Earlier this year Primark launched a 35-piece collection which is designed to be recycled and reused. Primark said that the collection uses more sustainably sourced materials than its standard range.

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