Primark owner ABF says autumn lockdowns cost £430m

Associated British Foods increased its estimate for lost sales during recent Covid-19 lockdowns to £430m as it reported strong demand at Primark stores that had reopened.

The FTSE 100 company's stores in England, Ireland, France, Belgium and other markets were forced to close from early November as governments imposed temporary restrictions to stem rising Covid-19 infections.

ABF's initial estimate for lost Primark sales was £375m but the impact was greater than expected, Chairman Michael McLintock said in a statement for the company's virtual annual general meeting. Most stores have reopened and sales have been "very strong", he said.

McLintock said ABF would continue to expand retail selling space and that Primark's sales and profit would be higher in the current year than the year before. Trading in grocery, sugar, ingredients and agriculture is ahead of expectations, the company said.

"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," McLintock said. "All orders placed with our suppliers have been honoured."

Primark has extended opening hours at stores in England and the Republic of Ireland to lure in customers and cater for higher demand. Across the group 34 stores remain shut including all Primark branches in Northern Ireland and Austria.

ABF shares rose 0.9% to £23.23 at 08:13 GMT.