Executive Summary

• Associated British Foods reported an FY17 pre-close trading update for the 52 weeks ended September 16, 2017. This report focuses on the results for Primark, the company’s retail division.
• Primark reported that FY17 revenues increased by 20% year over year and by 13% on a constant-currency basis. The company increased its selling space by 13% and comparable store sales saw a 1% increase year over year.
• The margin erosion experienced at the beginning of the year seems to have been halted, as the company expects the operating margin for FY17 to be higher than the 10.0% reported in 1H17.