The COVID crisis weighs heavily on the results of Associated British Foods, the parent group of the Primark clothing chain. Because many stores kept the doors locked because of quarantine, profits have plummeted over the past year.
In addition, Primark was one of the hardest-hit clothing stores, as it does not sell products online. During the summer period there was a strong recovery, but at present many countries in which primary branches have in place measures to prevent the spread of the coronavirus are in place. In Ireland, Belgium, France, Spain and Slovenia, for example, the shops are closed. It’ll cost the company hundreds of millions of pounds a month.
Primary accounts for more than half the profits of AB Foods, which is also active in the food and sugar sectors. These parts did well in the last financial year, because many people stay at home and spend more money on these products.
The adjusted pre-tax profit of AB Foods was 35 percent lower last year at GBP 914 million, slightly over EUR 1 billion. The group’s total turnover decreased by 12 percent to £ 13.9 billion.