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Food & drink

AB Foods says Primark shutdowns will cost £650mln in sales per month

All its Primark outlets in the UK were closed from Sunday

Associated British Foods PLC (LON:ABF) closed all its Primark outlets in the UK from Sunday, meaning 376 stores in twelve countries are now shut.

The UK accounted for 41% of revenues and in total the closures will cost Primark a net £650mln in lost income per month.

Last week, the coronavirus impact shut its stores in France, Spain and Austria, which accounted for 20% of selling space and 30% of its revenue.

Primark added it is also no longer placing orders with its suppliers for new stock, which allied to other measures include the axing of all discretionary spending, rent reductions and government support means will enable it to recover around 50% of total operating costs.

AB Foods added the group had £800mln of net cash at the half-year, together with a revolving credit facility of some £1.1bn.

The other businesses within the group - sugar, grocery, ingredients and agriculture- have not been materially affected by the virus.

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