Business · Companies · 11 hrs ago
Primark owner reports lower profits ahead of planned split
Associated British Foods’ adjusted pre-tax profit fell 14% to £1.46 billion for the year ending September 12.
ABF owns Primark as well as food businesses including Twinings, Ryvita and Patak’s.
Primark’s sales rose 4% to £9.8 billion, helped by new store openings, but its profit fell around 11%.
Like-for-like sales fell 2.6% overall, with the UK improving while continental Europe remained especially weak.
ABF says it is on track to separate Primark into a standalone listed company by December 2027, leaving a food-focused business.
The split will give shareholders stakes in two separate companies, rather than raising new money.
ABF expects profits to fall again next year, citing weakness in its sugar business and caution over consumer sentiment and costs.
Associated British Foods reported lower profits and said it expects earnings to fall again next year.
Adjusted pre-tax profit fell 14% to £1.46 billion for the year to September 12.
Primark’s profits fell by around 11%, while its sales rose 4% to £9.8 billion.
ABF cited weak consumer sentiment, inflation and weakness in its sugar operation.
The company said it remains on track to separate Primark in a stock market listing in December 2027.
- Who
- Associated British Foods, which owns Primark, reported the results.
- What
- Adjusted pre-tax profit fell 14% to £1.46 billion. ABF also said profits are expected to fall again next year.
- When
- The results cover the year to September 12. They were reported on November 3, 2026.
- Where
- The results cover ABF’s businesses across its markets, including the UK and Europe.
- Why
- ABF cited weak consumer sentiment, inflation and commodity costs. Weakness in its sugar operation is expected to weigh on profits next year.
This story does not have two clearly opposing sides.
ABF recorded adjusted pre-tax profit of £1.46 billion, down 14% on the previous year.
ABF reported its results and said it remained on track to separate Primark.
ABF plans to complete the Primark demerger through a stock market listing.
- Adjusted pre-tax profit
- £1.46 billion, down 14%
- Primark sales
- £9.8 billion, up 4%
- Primark like-for-like sales
- Down 2.6%
- Planned demerger
- December 2027
- Grocery division sales
- £4.2 billion, up 3%
3 sources
What people are saying
Looking ahead, while we remain cautious about consumer sentiment and commodity costs, we will continue our sharp focus on driving financial performance and delivering the growth opportunities from capital investments across the group.
We are on track to complete the demerger of Primark from AB Foods in December 2027, positioning both businesses to deliver on their medium and long-term growth prospects.