Associated British Foods said on Monday that Kingsmill firm Allied Bakeries and clothing retailer Primark continued to make progress.
With the company’s Twinings Ovaltine arm also doing well, AB Foods said it expected interim results in April to show "good growth" in operating profits on a year earlier.
The positive update comes despite a fall in sugar profit in the UK and Poland, with the company under pressure due to poor crops and EU quota changes.
AB Foods said Primark sales and profit were "substantially ahead" of last year, reflecting an increase in selling space and a 4% increase in like-for-like sales. This is in line with estimates in the City a month ago, when AB Foods last issued guidance to the market.
Primark’s performance has compared favourably with rival Marks & Spencer, which reported a 3.2% fall in general merchandise sales for its third quarter.
The chain operates 173 stores with five million sq ft of selling space in the UK, Ireland and Spain. Meanwhile, AB Foods said its Kingsmill bakeries arm Allied had maintained the improvement seen since the middle of last year.
It has boosted its contribution to the company’s grocery division, with "continued improvement" in operational performance and higher volumes. Rising wheat prices have been recovered through price hikes, AB Foods added.