Associated British Foods PLC AGM Trading update (5261H)
December 04 2020 - 2:00AM
UK Regulatory
TIDMABF
RNS Number : 5261H
Associated British Foods PLC
04 December 2020
4 December 2020
Associated British Foods plc
AGM Trading update
Associated British Foods plc is holding its Annual General
Meeting today. At the meeting the Chairman, Michael McLintock, will
say:
"Today I am providing a trading update for the group, further to
our statement of 2 November which detailed the store closures
expected at that time due to government restrictions in many of the
markets where Primark trades, and further to our annual results
announcement of 3 November.
Stores in our major markets of the Republic of Ireland, England,
France and Belgium reopened in the last week. Sales in the days
since reopening in each of these markets have once again been very
strong, reflecting the excitement and appeal of the Primark
offering. We have extended the opening hours during this festive
season in most of our stores in the Republic of Ireland and England
to cater for the anticipated higher customer demand and to help
ensure a safer environment by spreading shopping hours over a
longer period.
Across our markets 34 stores remain temporarily closed,
including all stores in Northern Ireland and Austria, and the
government-announced periods of closure vary by market. This
represents 7% of our total retail selling space compared to 62%
when the highest number of stores were closed in November.
Our estimate for the loss of sales for the announced periods of
closure this Autumn is now some GBP430m. The operating costs of the
stores which were closed were reduced by some 25% during this
period of closure. All orders placed with our suppliers have been
honoured. In a small number of markets trading hours and store
occupancy levels continue to be restricted and uncertainty about
further temporary store closures in the short-term remains.
Since the start of this financial year we have opened new stores
in the US: American Dream, New Jersey and Sawgrass Mills, Florida.
The success of these store openings in the US and our like-for-like
performance in our reopened stores is very encouraging, reinforcing
our confidence in the acceleration of our US store opening
programme. We had a very strong customer response to the opening of
our first store in Rome, Italy last week. We have opened our fifth
store in Barcelona, Spain and this morning we have opened our
50(th) store in Spain, in León. These store openings bring our
total estate to 389 stores and 16.5m square feet of retail selling
space.
Notwithstanding the currently announced periods of restriction,
we continue to expect Primark sales and profit to be higher this
financial year compared to last. We will continue to expand retail
selling space.
At this early stage in our new financial year trading across
Grocery, Sugar, Ingredients and Agriculture has been ahead of both
expectation and last year. Our forecast for UK sugar production for
2020/21 is now 0.9m tonnes, lower than previously expected and well
down on last year's 1.19m tonnes, due to the severe impact of virus
yellows disease on sugar beet. Mainly driven by an improved
performance in Illovo, for the full year AB Sugar is still expected
to deliver a higher profit.
Following the UK's exit from the EU, our businesses have
completed all practical preparations for the end of the transition
period this month and contingency plans are in place should our
businesses experience some disruption at that time."
For further enquiries please
contact:
Associated British Foods
John Bason, Finance Director Tel: 020 7399 6545
Catherine Hicks, Corporate Affairs Tel: 020 7399 6545
Director
Citigate Dewe Rogerson
Chris Barrie Tel: 07968 727 289
Jos Bieneman Tel: 07834 336 650
Note: In light of the COVID-19 pandemic the AGM will be held as
a closed meeting and regrettably shareholders are unable to attend
in person. Further details can be found on the ABF website here
.
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END
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