Connect with us
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Business

AB Foods first half profit halves on Primark’s COVID-19 hit

AB Foods first half profit halves on Primark's COVID-19 hit 1

LONDON (Reuters) -Associated British Foods on Tuesday reported a halving in first half profit, after COVID-19 lockdowns shuttered its Primark fashion stores.

Adjusted profit before tax fell to 319 million pounds ($446 million) for the six months to Feb. 27 from 636 million a year earlier, said the group, which also owns major sugar, grocery, agriculture and ingredients businesses.

Group revenue fell 17% to 6.3 billion pounds driven by the loss of retail sales as most of Primark’s stores were closed for more than half the period.

Primark, which does not trade online, saw its adjusted operating profit slump 90% to 43 million pounds.

Shares in AB Foods were down 3% in early trading.

However, the group said Primark recorded record sales in England and Wales in the week after stores reopened on April 12.

“Looking ahead, with stores reopening and Primark once again becoming cash generative, our confidence is reflected in our decisions to repay (to government) the job retention scheme monies in respect of this financial year and to declare an interim dividend,” CEO George Weston said.

AB Foods said it would pay an interim dividend of 6.2 pence, having cancelled both the interim and full-year payments last year.

The grocery division, with brands that include Kingsmill bread and Twinings tea, reported a 5% increase in profit, while sugar profit soared 450%, agriculture profit rose 19% and ingredients profit increased 26%.

The group forecast a softer performance from its food businesses in the second half. It still expects full year profit for Primark to be “somewhat lower” than for 2019-20.

($1 = 0.7147 pounds)

(Reporting by James Davey; editing by Sarah Young and Barbara Lewis)

Global Banking and Finance Review Awards Nominations 2022
2022 Awards now open. Click Here to Nominate

Advertisement

Newsletters with Secrets & Analysis. Subscribe Now