Associated British Foods PLC Covid-19 Update (1661H)
March 23 2020 - 3:00AM
UK Regulatory
TIDMABF
RNS Number : 1661H
Associated British Foods PLC
23 March 2020
23 March 2020
Associated British Foods plc
Covid-19 Update
As a result of the rapidly changing situation regarding
Covid-19, Associated British Foods plc is issuing an update on
trading in its Primark stores, further to the update issued on 16
March 2020.
As at 16 March 2020, Primark stores representing 20 percent of
selling space and 30 percent of sales were closed. Since then, and
following the closure on Sunday of all stores in the UK which
represented 41 percent of sales, all 376 stores in 12 countries are
now closed until further notice. This represents a loss of some
GBP650m of net sales per month.
A variety of work streams have been established to mitigate the
effect of the contribution lost from these sales and all
expenditure is being reviewed. In the first instance we have
implemented a significant reduction in discretionary spend. We are
making good progress in also reducing fixed costs following
discussions with counterparties, in particular landlords, and
welcome the recently announced government support in the countries
in which our stores operate. As a result, we currently estimate
being able to recover some 50 percent of total operating costs.
To manage Primark stock we have also regrettably informed
suppliers that we will stop placing new orders.
The group has a strong balance sheet, substantial cash liquidity
with some GBP800m of net cash at the half year, together with a
revolving credit facility of some GBP1.1bn. Therefore, total
available liquidity is GBP1.9bn.
Importantly, we reiterate that in aggregate, we have not seen a
material impact in our sugar, grocery, ingredients and agriculture
businesses.
For further enquiries please contact:
For further enquiries please contact:
Associated British Foods
John Bason, Finance Director Tel: 020 7399 6500
Catherine Hicks, Corporate Affairs Director
Citigate Dewe Rogerson
Chris Barrie, Jos Bieneman Tel: 020 7638 9571
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END
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