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* Primark profit 362 mln stg vs 969 mln stg
* Forecasts improvement in 2020-21 despite COVID curbs
(Adds details, shares)
LONDON, Nov 3 (Reuters) - Associated British Foods
on Tuesday reported a 40% fall in full-year earnings, with a
COVID-19 related hit to profit at its Primark clothing business
outweighing increases at its sugar, grocery, agriculture and
ingredients divisions.
The group's adjusted earnings per share were 81.1 pence in
the year to Sept. 12, down from 137.5 pence reported for the
2018-19 year. ABF said it would not pay a final dividend.
Primark's profit plunged to 362 million pounds ($468.4
million) from 969 million pounds, reflecting the closure of its
stores across Europe during a first wave of coronavirus
lockdowns and the impact of the virus on customer demand.
Trading was strong after the stores reopened. But the group
warned on Monday a second wave of lockdowns would dent sales by
375 million pounds. Primark does not have an online business.
The group expects Primark's full year 2020-21 sales and
profit to be higher than 2019-20 despite the latest COVID-19
restrictions. It forecast a sales decline in the first half but
higher sales in the second half.
The group said it will continue to expand retail selling
space.
First-half profit at AB Foods' grocery division, whose
brands include Kingsmill bread, Twinings tea, Ovaltine and
Jordans cereal, rose to 437 million pounds from 381 million
pounds.
Sugar profit increased to 100 million pounds from 30 million
pounds and ABF forecast further improvement in the current year.
The group said it had completed all practical preparations
for the end of Britain's Brexit transition period with the
European Union on Dec. 31.
"Contingency plans are in place should our businesses
experience some disruption at that time," it said.
Shares in AB Foods, majority owned by the family of CEO
George Weston, were down 1.7% at 0809 GMT, extending losses this
year to 35%.
($1 = 0.7729 pounds)
(Reporting by James Davey; editing by Guy Faulconbridge/Louise
Heavens/Jane Merriman)
