Last checked at 
* AB Foods earnings down 40% in 2019-20
* Primark profit falls 63%
* Primark forecasts improvement in 2020-21
* AB Foods shares extend 2020 losses to 35%
(Adds detail, CEO comments, shares)
By James Davey
LONDON, Nov 3 (Reuters) - Primark-owner Associated British
Foods has no plans to build an online business for the
fashion retailer despite it recording a 63% slump in full-year
profit due to COVID-19 lockdowns, the group said on Tuesday.
Over the last decade Primark, which sells only from physical
stores, has been the fastest-growing arm of Britain's AB Foods,
a group that also owns major sugar, grocery, agriculture and
ingredients businesses.
But the pandemic has hit Primark hard, with the clothes
retailer's adjusted operating profit for the year to Sept. 12
falling to 362 million pounds ($470 million) from 969 million
pounds in 2018-19, reflecting the closure of its stores across
Europe in a first wave of lockdowns.
Primark does not sell online because it does not consider
that to be economically viable given the selling price of its
products.
AB Foods Chief Executive George Weston said that thinking
had not changed.
He said Primark had traded well since stores reopened, with
2 billion pounds of sales to Sept. 12, adding that new stores
were still being well received in new markets.
"I think that COVID has more demonstrated the strength of
Primark than the weakness," he told Reuters. "What we've seen
with Primark is when people are able to shop they prefer to shop
with us than do so online," he said.
NEW LOCKDOWNS
Weston also noted that over half of Primark's regular
customers did not buy anything online during lockdown,
preferring to wait for stores to reopen.
"That is I think a very reassuring statistic," he said.
Primark warned on Monday that a second wave of lockdowns
would dent sales by 375 million pounds, but it still expects
full year 2020-21 sales and profit to be higher than 2019-20.
Primark will also continue to open more stores, including an
acceleration of openings in the United States.
Shares in AB Foods were down 1.4% at 1021 GMT, extending
losses this year to 35%.
AB Foods reported a 40% fall in 2019-20 adjusted earnings
per share to 81.1 pence with the profit fall at Primark
outweighing increases at its other divisions. The group is not
paying a final dividend.
Profit at AB Foods' grocery division, whose brands include
Kingsmill bread, Twinings tea, the Ovaltine drink and Jordans
cereal, rose 15% to 437 million pounds.
Sugar profit more than trebled to 100 million pounds with
further improvement forecast in the current year.
($1 = 0.7710 pounds)
(Reporting by James Davey; editing by Guy Faulconbridge and
Pravin Char)
