Associated British Foods (ABF) has posted a marginal rise in its grocery sales led by Twinings and Ovaltine, despite sales of its UK-focused businesses declining.

For the 16 weeks to 4 January 2025, the British food company saw a 1% uptick in grocery sales, which it said reflected “good growth” in its international brand businesses, driven by Twinings and Ovaltine.

However, this was partially offset by certain US and UK-focused brands as overall sales of its UK businesses declined, primarily due to lower volumes and sales in Allied Bakeries, which it noted was “expected”.

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Sales in ABF’s sugar division declined 2% as “good sales growth” in Africa was offset by a fall in European sugar prices, also resulting in a sales decline in the UK and Spain.

The processing of its UK sugar beet crop is underway and early indications are that sugar production will be broadly in line with last year.

Despite this, sales in ABF’s ingredients division grew 4% over the period, as sales in its yeast and bakery ingredients business AB Mauri grew 4% led by “good growth” in its Central and South American markets. Its specialty yeast business AB Biotek also had an “encouraging” start to the year.

Looking ahead, the group expects trading in line with previous forecasts, which includes continued sales momentum in grocery underpinned by increased marketing momentum and continued growth in yeast and bakery, and improved growth in specialty ingredients.