The owner of Primark has posted a 42pc slump in profits for its full year after it was forced to shut all its stores during the spring lockdown. 

Associated British Foods, which also owns Twinings and Ryvita, reported pre-tax profits of £686m for the year to Sept 12, down from £1.17bn for the same period last year. Revenue fell 12pc to £13.9bn.

It comes a day after ABF warned that a second lockdown would result in a £375m sales hit, with 57pc of selling space in its Primark stores closing temporarily.

On Tuesday it said that “the impact on Primark of the increasing number of government restrictions in the markets in which it operates is significant”.

The company expects Primark's full-year sales and profit “to be higher next year”, while its sugar business is also expected to deliver a higher profit in 2021. It added that it will continue to expand retail selling space. 

While trading was robust after reopening during the summer, the retail giant will be hit particularly hard by a second lockdown as it does not have an online business to allow it to trade during the shutdown. So far its shares have slumped a third during the pandemic.

Chief executive George Weston said: “Following a three-month closure, Primark delivered a robust performance, receiving an overwhelmingly positive response when it safely welcomed customers back to its stores.

“Uncertainty about temporary store closures in the short term remains, but sales since reopening to the year end of £2bn demonstrate the relevance and appeal of our value-for-money offering.”

ABF scrapped its final dividend after the increasing restrictions in a number of Primark’s major markets led the company “to be cautious”. 

Chairman Michael McLintock said: “To say that this has been an extraordinary year would be something of an understatement.”