For years, it made profits at Associated British Foods sparkle. The FTSE 100 group’s ownership of Primark more than compensated for underperformance elsewhere, in particular in its sugar business. Now, however, the coronavirus pandemic has changed everything.
With all 376 Primark stores in 12 countries closed and with no online operation to turn to, the clothing chain’s sales effectively have been reduced to zero, accounting for lost turnover worth £650 million a month. With no end to national lockdowns in sight, certainly in Britain, it means that profits at ABF will be hit hard in the short term. It’s just as well that Primark is not the only business in its portfolio.
Associated British Foods was created in 1935 as Food Investments, after which
