Company Reports

Associated British Foods released its fourth-quarter 2026 trading update (ending Sept. 12), with estimated like-for-like retail sales down 3%. The firm’s full-year projections are mostly unchanged, except that it now expects weaker profitability in grocery and sugar. Shares fell 8% on Sept. 9.

Associated British Foods is a diversified international food, ingredients, and retail group with operations in 56 countries. In fiscal 2025, Primark, its multinational retail chain, accounted for around 60% of its operating profit. On April 21, 2026, ABF announced its plans to separate Primark and the food businesses. Subject to approvals, the demerger is expected to become effective at the end of 2027.

Associated British Foods delivered 3% constant currency sales growth for fiscal third-quarter 2026, driven by store openings in Primark and solid growth in grocery and ingredients, slightly offset by continued pressures in sugar and agriculture. Shares declined 2% intraday on July 1.

Associated British Foods is a diversified international food, ingredients, and retail group with operations in 56 countries. In fiscal 2025, Primark, its multinational retail chain, accounted for around 60% of its operating profit. On April 21, 2026, ABF announced its plans to separate Primark and the food businesses. Subject to approvals, the demerger is expected to become effective at the end of 2027.

Following its strategic review, Associated British Foods announced it is splitting Primark from its food businesses, subject to approvals. Interim fiscal 2026 results showed declines in revenue and operating profit of 2% and 18%, respectively. Shares fell nearly 5% in early trading on April 21.

Associated British Foods reported its first-quarter fiscal 2026 trading update, including a group revenue decline of 0.9% at constant rates, with Primark’s like-for-like sales down 2.7%. The results are largely consistent with estimates provided on Jan. 8.

Associated British Foods is a diversified international food, ingredients, and retail group with operations in 56 countries. In fiscal 2025, Primark, its multinational retail chain, accounted for around 60% of its operating profit. On Nov 4, 2025, ABF announced it has been conducting a strategic review to potentially separate the Primark and Food businesses. A final decision is expected to be made within 12-18 months.

Associated British Foods, a diversified international food, ingredients, and retail group with operations in 56 countries. In fiscal 2025, Primark, its multinational retail chain, accounted for around 60% of its operating profit. On Nov 4, 2025, ABF announced it has been conducting a strategic review to potentially separate the Primark and Food businesses. A final decision is expected to be made within 12-18 months.

We’re transferring coverage of Associated British Foods, a diversified international food, ingredients, and retail group with operations in 56 countries. In fiscal 2025, Primark, its multinational retail chain, accounted for around 60% of its operating profit.

In its fiscal 2025 results, Associated British Foods announced a strategic review that could lead to the separation of its Primark and food businesses. Otherwise, the update offered few surprises relative to the September 2025 trading update. Shares were down around 2% in early trading on Nov. 4.

In its second-half fiscal 2025 trading update, Associated British Foods guided to 1% sales growth and 15 new store openings at Primark. The group also announced the closure of its long-struggling bioethanol plant and a merger with Hovis bread. Shares fell 10% at the market open on Sept. 10.

Although we think Associated British Foods' mass apparel retail division, Primark, should deliver consistent growth through its expansion over the short term, supported by reliable performance from the remaining largely commodified food divisions, we believe the company’s potential will be limited over the long term by intense competition and a lack of differentiation, leading to our no-moat rating.

Associated British Foods reported first-half fiscal 2025 flat constant-currency sales and a 12% decline in adjusted operating profit. The group lowered the operating profit guidance for the sugar business amid challenging trading conditions. Shares were down 9% in intraday trading.

Associated British Foods issued a trading update for the 16 weeks to Jan. 4 (the first quarter of fiscal 2025). Primark's like-for-like sales declined 1.9%, hit by a weak retail trading environment.

Associated British Foods reported robust fiscal 2024 results, with adjusted operating profit up 38%, primarily driven by input cost normalization for Primark. Guidance for fiscal 2025 was broadly in line with the early outlook shared in September 2024.

No-moat Associated British Foods issued a trading update for the second half of fiscal 2024 (ending Sept. 14, 2024), highlighting a hit to operating profit from falling European sugar prices and slower like-for-like sales growth at Primark due to poor weather in the UK and Ireland. The sharp decline in European sugar prices in the fourth quarter is expected to impact operating profit for the segment for both fiscal 2024 and 2025, with a much larger effect in 2025. The group anticipates that the sugar segment's operating profit in fiscal 2025 will range between GBP 50 million and GBP 75 million, down from an expected GBP 200 million in 2024. Profitability is forecast to rebound in fiscal 2026, driven by lower contracted beet prices and normalized demand. We don’t expect to make any material changes to our GBX 2,600 fair value estimate as the fiscal 2025 sugar operating profit hit is broadly offset by a time value of money adjustment in our forecast. The 2024 profit guidance is aligned with our estimates. The share price was down more than 5% following the release, with the shares now offering a 10% discount to fair value.

No-moat Associated British Foods reported solid interim results for the 24 weeks to March 2—the first half of fiscal 2024—with constant-currency sales growth of 5% and adjusted operating margin of 9.8%, compared with 7.2% for the same period last year. The strong improvement in profitability was primarily attributed to a return to more normal conditions in supply chains and the easing of inflationary pressure. All segments contributed to the margin improvement, although market conditions remain challenging for the agriculture segment, which posted a 9% sales decline due to continued soft demand for compound animal feed in China and the UK. Management reiterated its upbeat 2024 outlook for significant growth in profitability and cash generation, now ahead of expectations at the start of the fiscal year. The share price was up around 10% in intraday trading on the back of the solid set of results. We are increasing our fair value estimate by 10% to GBX 2,600 per share after updating our short-term forecast to reflect the faster-than-expected operating margin recovery for the group, as well as a time value of money adjustment. The shares appear fairly valued at current levels.

Although we think Associated British Foods' mass apparel retail division, Primark, should deliver consistent growth through its expansion over the short term, supported by reliable performance from the remaining largely commodified food divisions, we believe the company’s potential will be limited over the long term by intense competition and a lack of differentiation, leading to our no-moat rating.

No-moat Associated British Foods, or ABF, reported a trading update for the 16 weeks to Jan. 6 (first quarter of fiscal 2024) with Primark like-for-like, or LFL, sales growth of 2.1%, driven primarily by slightly higher average prices compared with the prior year. LFL sales growth was stronger in the U.K., at 3.8%, given robust sales in the run-up to Christmas. Primark’s market share development was also positive in its home market, posting a 10-basis-point improvement in December compared with the prior year. In Continental Europe, LFL sales were up by 1.3%, with some of the markets experiencing tough economic conditions and facing strong comparatives from the same period of last year. Management expects pricing to be benign for the rest of the year, given soft volumes and continued pressure on consumers’ disposable income.

We increase our fair value estimate for no-moat Associated British Foods, or ABF, by 5% to GBX 2,370 following a solid set of fiscal 2023 results and an increase in our 2024 margin assumptions to 8.8% from 8.2% previously. This is supported by an optimistic outlook from management, guiding for a substantial improvement in profitability for both the sugar and the retail businesses. The share price was up around 7% in intraday trading, leaving shares relatively fairly valued.