By Matteo Castia

Associated British Foods PLC warned Monday that it has been hit by coronavirus-caused store closures in Europe and it doesn't expect to "significantly mitigate" the headwind through its remedial actions.

The British conglomerate--which houses clothing retailer Primark--said the stores that are now closed in Italy, France, Spain and Austria account for 30% of Primark's revenue.

It added that like-for-like sales in its core U.K. market, which account for 41% of Primark's revenue, declined over the last two weeks due to the pandemic.

The company also said it expects an adjusted operating profit above its expectations for the first half of fiscal 2020, driven by higher margins from Primark and its grocery business.

Write to Matteo Castia at matteo.castia@dowjones.com

(END) Dow Jones Newswires

March 16, 2020 03:36 ET (07:36 GMT)

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