Primark closures hit AB Foods' profits

Primark closures hit AB Food's profits, but the outlook is looking brighter.

Trader 1

 

Primark owner Associated British Foods is advancing in early trade after showing resilience in results the 24 weeks to February 24th.

The diversified nature of the business helped AB Foods trough the past 6 months.

Whilst Primark store closures inevitably hit profits the food business picked up some of the slack.

Primark sales were hit by £1.1 billion owing to lockdown. However 83% of stores are expected to be reopened by 26th April.

The share price trades at an 11 month high and the bulls have brought 2714 the pre-pandemic February high back into focus.

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