Executive Summary

• Associated British Foods (ABF) reported results for FY18 ended September 15. This report focuses on results for Primark, the company’s retail business.
• Primark grew FY18 sales by 5.2% at constant currency, driven by a strong UK performance. Operating profit jumped 15% (13% at constant currency) to deliver an operating margin of 11.3%, up 90 basis points (bps) from FY17.
• During the year, Primark expanded retail selling space by a net 0.9 million square feet. The retailer plans to add over 1 million square feet of net selling space in FY19.