4th Dec 2020 08:37
(Alliance News) - Associated British Foods PLC on Friday said it lost GBP430 million in autumn sales due to lockdowns forcing closures of its Primark retail arm.
The London-based food processing and retailing company said sales in the days since Primark fast-fashion stores have reopened have been "very strong". A total 34 of its stores in Northern Ireland and Austria remain temporarily closed, a total of 7% of its selling space. However, this is a big improvement on 62% closed at the height of the November lockdown. Primark doesn't sell online.
"We have extended the opening hours during this festive season in most of our stores in the Republic of Ireland and England to cater for the anticipated higher customer demand and to help ensure a safer environment by spreading shopping hours over a longer period," Chair Michael McLintock is due to say at the diversified firm's annual general meeting on Friday.
"Our estimate for the loss of sales for the announced periods of closure this Autumn is now some GBP430 million. The operating costs of the stores which were closed were reduced by some 25% during this period of closure. All orders placed with our suppliers have been honoured. In a small number of markets trading hours and store occupancy levels continue to be restricted and uncertainty about further temporary store closures in the short-term remains," he added.
Looking ahead, AB Foods expects both Primark's annual sales and profit to be higher year-on-year, and it will continue to expand retail selling space.
Currently, the company's Grocery, Sugar, Ingredients and Agriculture units are trading ahead of expectations. Its forecast for UK sugar production for 2020/21 financial year is now 900,000 tonnes, which is lower than previously expected and down on last year's 1.19 million tonnes due to the severe impact of virus yellows disease on sugar beet.
Shares in AB Foods were up 2.0% at 2,348.00 pence in London on Friday.
By Zoe Wickens; [email protected]
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