Shares of Associated British Foods plc (LON: ABF) surged higher today after the company announced that it expects to make a bigger profit from Primark sales as compared to last year despite the coronavirus lockdown measures.
The food processing and retailing company issued a trading update where it revealed that its losses from the Autumn coronavirus lockdown measures were likely to come in at £430 million, which was higher than the £375 million figure announced in November.
Primark contributes a big chunk of AB Foods, profits and the fact that most of its stores have reopened with the exception of 34 stores is good news for the food company.
Michael McLintock, the Chairman of AB Foods explained that: “Following the UK’s exit from the EU, our businesses have completed all practical preparations for the end of the transition period this month and contingency plans are in place should our businesses experience some disruption at that time,”
The fast-fashion retailer has opened two stores in the US and Spain and its first-ever store in Rome, Italy, which is why AB Foods expects Primark sales this year to be better than last year’s figures.
AB Foods share price
ABF shares today surged 2.56% to trade at 2362p having rallied from Thursday’s closing price of 2303p.