Friday 6 December 2019 7:29 am

Primark set to drive another year of growth for ABF

Associated British Foods (ABF), the British multinational which owns Primark, reiterated its outlook for the new financial year ahead of this morning’s AGM.

The new financial year will see Primark expand its selling space, with the most new stores being added in France and Spain.

Read more: Primark bounce helps offset sugar slump at ABF

With three new stores added since the end of the last year, Primark’s total estate now comprises 376 stores.

Margin is expected to be only slightly lower than last year. Although weaker sterling with have an effect on purchases, this will be offset by reductions to the costs of goods and overheads.

Chairman Michael McLintock said that the rise in EU sugar prices would help the food retailer to achieve a further year of strong profit in its grocery division.

Last year sugar prices collapsed in Europe after a poor crop from China, which had a substantial knock-on effect on ABF’s sugar business.

He added that the group had completed contingency plans in case of disruption in the event of the UK’s exit from the EU.

Read more: Primark profit soars but owner ABF blames poor sugar crop

“Taking these¬†factors into account, we still expect progress, on both a reported and an IFRS 16 adjusted basis, in adjusted earnings per share for the group for this financial year”, McLintock said.

In last year’s full year results ABF posted revenue and profit growth of two per cent and one per cent respectively.