AB Foods 16-Week Revenue Hit by Store Closures, Primark Sales Fall 30% -- Update
January 14 2021 - 3:34AM
Dow Jones News
--Primark sales for the period fall 30% amid store closures
--Full-year sales, adjusted operating profit for Primark are
expected to be lower than in fiscal 2020
--Sugar business revenue rose to GBP545 million
By Sabela Ojea
Associated British Foods PLC said Thursday that revenue for the
first 16 weeks of fiscal 2021 declined, with clothing retailer
Primark hit by the closure of stores.
The FTSE 100 company said revenue for the 16 weeks ended Jan. 2
fell to 4.80 billion pounds ($5.56 billion) compared with GBP5.51
billion for the same period a year earlier.
The British conglomerate said Primark sales for the period were
30% lower than in fiscal 2020, adding that Primark's full-year
sales and adjusted operating profit are expected to be somewhat
lower than last year.
Currently, 305 stores are closed, representing 76% of its retail
selling space, it said.
If all currently closed Primark stores remain closed until the
financial half year ending Feb. 21, the loss of sales would be
around GBP1.05 billion, ahead of its previous GBP650 million
estimate.
This would also translate into Primark posting a broadly
break-even first-half adjusted operating profit compared with
GBP441 million recorded for the year-earlier period.
"Under the scenario that the entire estate is closed imminently,
and remains closed until the end of March, we would expect to see
over the three month period a further loss of Primark sales of some
GBP800 million, and a consequent reduction in profit contribution
of some GBP300 million," AB Foods said.
Revenue at the company's sugar business rose to GBP545 million
from GBP512 million, while grocery business revenue increased to
GBP1.22 billion from GBP1.14 billion.
Agriculture revenue rose to GBP507 million from GBP463 million.
AB Foods said trading across grocery, sugar and agriculture was
ahead of views.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
January 14, 2021 03:19 ET (08:19 GMT)
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