LONDON, Nov 7 (Reuters) - Primark owner Associated British Foods on Tuesday reported a 5% increase in annual profit and forecast "meaningful progress" in its 2023/24 financial year.

The group, whose shares have risen 34% so far this year, said profit growth in 2023/24 would be driven by a substantial improvement at its sugar business and a strong recovery in Primark's margin thanks to lower material and freight costs.

"Whilst the environment is still challenging for the consumer, inflationary pressures have eased and there is less volatility than there was 12 months ago. The group is well positioned as a result," it said.

"We look forward to a year of meaningful progress."

For the year to Sept. 16, 2023, AB Foods, which also owns major grocery, ingredients and agriculture businesses, made adjusted operating profit, its key profit measure, of 1.51 billion pounds ($1.86 billion), up from the 1.44 billion pounds made in 2021/22. Revenue rose 16% to 19.75 billion pounds. ($1 = 0.8121 pounds) (Reporting by James Davey; editing by Sarah Young)