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For the current financial year, the management at Primark expects slightly lower revenues and an even smaller adjusted operating profit than in the previous year, as AB Foods announced on Thursday in London. The first quarter of the current financial year went accordingly: In the 16 weeks to January 2, 2021, consolidated sales fell by 13 percent currency-adjusted to £ 4.8 billion (EUR 5.38 billion).
Although the group achieved growth in all other areas, the Primark business, which is located in the retail segment, pulled the development down significantly. Adjusted for currency effects, the division’s sales were 30 percent lower than in the same period of the previous year.
AB Foods explained the decrease with the tightened corona measures in Great Britain and other European countries. This included exit restrictions, restricted opening times and the complete closure of shops. Management estimates the company lost £ 540 million in revenue as a result. According to the information, 305 Primark stores are currently closed – this corresponds to around three quarters of all branches.
It looked better in the other areas. In the sugar business, which was temporarily sluggish, sales increased by six percent after adjusting for currency effects, because the group benefited from higher average prices. In the grocery business, sales grew by seven percent. International customers would have bought products from Great Britain before the end of the Brexit transition phase, it said.
In London, AB Foods stocks temporarily lose 0.70 percent to £ 22.10.
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