AB Foods Fiscal Year 2020 Profit Fell on GBP2 Billion Coronavirus Hit to Revenue -- Update

--AB Foods pretax profit fell in fiscal 2020 as the coronavirus pandemic caused a GBP2 billion hit to sales

--The fall in revenue mainly occurred in the third quarter at Primark stores, which remained closed amid the spring lockdown

--No final dividend for the year was declared

By Matteo Castia

Associated British Foods PLC reported Tuesday a fall in pretax profit for fiscal 2020 as the coronavirus pandemic delivered a 2 billion-pound ($2.58 billion) hit to revenue.

The British conglomerate made a pretax profit of GBP686 million for the year ended Sept. 12, compared with GBP1.17 billion in fiscal 2019.

Revenue fell to GBP13.94 billion from GBP15.82 billion a year earlier. The reduction came mainly in the third quarter and was driven by store closures at its clothing business Primark, the company said.

"So far Covid-19 has cost the group some GBP2.00 billion of sales, GBP650 million in lost profit and a cash outflow of GBP800 million," AB Foods said.

The board declared no final dividend in an attempt to preserve resources amid the coronavirus pandemic.

"Notwithstanding the currently announced periods of restriction, we expect Primark full year sales and profit to be higher next year," the company said.

Write to Matteo Castia at matteo.castia@dowjones.com

(END) Dow Jones Newswires

November 03, 2020 04:27 ET (09:27 GMT)

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