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.

 

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

 

(END) Dow Jones Newswires

July 02, 2020 02:36 ET (06:36 GMT)

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