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.
Primark is in the expansion phase, and new store additions will contribute to growth for years to come.
Bears
The lack of an online retail business represents a potential hindrance to long-term growth, as Primark stands to miss out on about 50% of consumers’ budget allocation to the channel by 2030.
Associated British Foods is a diversified international food, ingredients, and retail group with 138,000 employees and operations in 56 countries across Europe, Africa, the Americas, Asia, and Australia. The group sells branded groceries, grows and processes sugar, supplies farmers with crop input and animal feed, and runs the multinational Primark clothing retail chain. It also supplies ingredients like bakers' yeast, enzymes, lipids, and cereal specialties. In fiscal 2025, approximately 36% of sales came from the UK, and Primark accounted for around 60% of operating profit.On April 21, 2026, ABF announced it plans to separate Primark and the food businesses. Subject to approvals, the demerger is expected to become effective at the end of 2027.