AB Foods Regulatory News (ABF)

Chairman's Address to AGM

9 December 2016

At this early stage in our new financial year, I would reiterate the outlook that we included in my statement in the annual report.

The good underlying trading achieved by our businesses last year has continued into the new financial year which has started well. We expect the expansion of Primark's selling space to continue in all of its major markets and, indeed, we have already opened 14 new stores, including three relocations, in this financial year. AB Sugar will benefit substantially from this year's increase in sugar prices and from reductions in its cost base. Grocery, Ingredients and Agriculture are expected to make further progress.

Assuming a continuation of current exchange rates, and following the significant devaluation of sterling, we expect group earnings to benefit from the translation of overseas profits. However, as Primark buys much of its merchandise in US dollars and half of its sales are in the UK in sterling, there will be an adverse effect, in the year, on its UK margins.

Taking all of these factors into account, we expect progress in adjusted operating profit and adjusted earnings for the group for this financial year.