Associated British Foods’ revenue declines in 1st 16 weeks of fiscal 2021.

In an announcement on Thursday, Associated British Foods plc (LON: ABF) said that its revenue saw a significant decline in the first sixteen weeks of the current financial year. The company attributed the decline primarily to its clothing subsidiary, Primark, that remained under pressure due to the newly imposed COVID-19 restrictions in the United Kingdom.

Associated British Foods opened a little under 2% down on Thursday but regained almost the entire intraday loss on market open. The stock is now trading at a per-share price of £22.17.

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

ABF reports a 30% year over year decline in Primark sales

For the sixteen weeks that concluded on 2^nd January, ABF reported £4.08 billion of revenue. In comparison, its revenue had come in at a higher £5.51 billion in the same period last year. The British multinational noted a 30% year over year decline in Primark sales during the period.

Associated British Foods also warned on Thursday that its adjusted operating profit and full-year sales are likely to be weaker than last year. In a report published in November, the food processing and retailing company posted a 40% decline in full-year earnings due to the ongoing pandemic.

ABF said that 305 of its countrywide stores (76% of its retail business) were still closed for the public to combat the ongoing Coronavirus pandemic that has so far infected more than 3.2 million people in the United Kingdom and caused a little under 85 thousand deaths.

Other prominent figures in ABF’s trading statement on Thursday

At £545 million, revenue from its sugar business, as per the London-based company, was higher than the year-ago figure of £512 million. Grocery business revenue during the period printed at £890 million as compared to a lower £830 million in the same period last year.

In separate news from the UK, housebuilder Taylor Wimpey said its full-year operating profit will come in line with the market expectations.

Associated British Foods reported £507 million of agriculture revenue on Thursday. In comparison, revenue from agriculture was capped at a much lower £463 million in the same period last year. All three segments (grocery, sugar, and agriculture), as per ABF, performed better than expected.

Associated British Foods performed fairly downbeat in the stock market last year with an annual decline of more than 10%. At the time of writing, ABF is valued at £17.59 billion and has a price to earnings ratio of 38.58.