Associated British Foods : AB Foods Revenue Hurt By Pandemic, Expects Sharp Drop in Annual Primark Profit

By Matteo Castia

Associated British Foods PLC said Thursday that its third-quarter revenue fell sharply as the pandemic slashed sales in its retail division.

The British conglomerate--which owns fashion brand Primark--said revenue fell 39% year-on-year to 2.61 billion pounds ($3.26 billion) during the quarter ended June 20.

Revenue in the 40 weeks to June 20 at constant currency fell 13% on the year to GBP10.25 billion, the company said.

Retail revenue plunged 75% to GBP4.29 billion, as Primark stores shut down during the lockdown. The fashion brand doesn't have an online business.

The company said almost all Primark stores are now open and that it estimates a full-year adjusted operating profit of GBP300 million to GBP350 million for the fashion brand. This compares with GBP913 million in fiscal 2019.

Revenue in the grocery division rose 9% to GBP2.63 billion.

"For the full year we continue to expect strong progress in the aggregate adjusted operating profit of our Sugar, Grocery, Agriculture and Ingredients businesses," AB Foods said.

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