PRIMARK (LSE: ABF) FY17 Results: Soft Comps and Margin Erosion

Executive Summary

• Associated British Foods reported FY17 results for the 52 weeks ended September 16, 2017. This report focuses on results for Primark, the company’s retail division.
• Primark reported a 19% year-over-year increase in FY17 revenues to £7,053 million, ora 12% year-over-year increase in constant currency. During the year, the company increased its selling space by 12.3%. UK sales increased by 10% year over year, and Primark managed to significantly increase its total share of the UK apparel market.
• Primark’s FY17 operating profit increased by 3% at constant exchange rates and the operating profit margin contracted by 120 basis points year over year to 10.4%.