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Primark to drive growth at ABF while sugar business sours: Key to retail arm's growth prospects is its expansion in the US Exam date: 6th

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Primark to drive growth at ABF while sugar business sours: Key to retail arm's growth prospects is its expansion in the US Exam date: 6th March 2019 Questions for Managing Financial Resources - Answer all questions. 1. The case study states that the "Group revenue rose by 1 per cent to 15.6bn. However, profit growth in the coming year would be held back by price pressure at ABF's sugar business, brought on by global oversupply since the end of EU production and export restrictions". Based on this statement, briefly explain the economic characteristics of the market, and discuss the relationship between demand, supply and price. ( 20% of marks) 2. Calculate the operating profit margin for ABF's retail division Primark, from 2014 to 2017 , critically evaluate, and comment on the importance of this ratio. ( 30% of marks) Primark to drive growth at ABF while sugar business sours: Key to retail arm's growth prospects is its expansion in the US Exam date: 6th March 2019 Questions for Managing Financial Resources - Answer all questions. 1. The case study states that the "Group revenue rose by 1 per cent to 15.6bn. However, profit growth in the coming year would be held back by price pressure at ABF's sugar business, brought on by global oversupply since the end of EU production and export restrictions". Based on this statement, briefly explain the economic characteristics of the market, and discuss the relationship between demand, supply and price. ( 20% of marks) 2. Calculate the operating profit margin for ABF's retail division Primark, from 2014 to 2017 , critically evaluate, and comment on the importance of this ratio. ( 30% of marks)

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