Key Highlights

  • Associated British Foods plc (LSE:ABF) reported annual results on 3 November 2026 with pretax profit of about £1.3 billion, roughly 10% lower.
  • The FTSE 100 group's Sugar division made an adjusted operating loss of £47 million and Ingredients profit fell 8% to £238 million.
  • Management trimmed its Grocery outlook and signalled that profit will fall again in the new financial year.
  • The Primark demerger is on course for completion in December 2027, and shares were down about 3% to near 1,888p on results day.
  • The FTSE 100 closed up 1.02% at 10,782.87 on 9 November 2026.

Why Associated British Foods (LSE:ABF) Is in Focus Today

Associated British Foods plc (LSE:ABF), the owner of Primark, Twinings, Ovaltine and a large sugar and ingredients business, is in focus on Monday 9 November 2026 after annual results that confirmed another difficult year. The FTSE 100 closed up 1.02% at 10,782.87 as consumer stocks recovered, but ABF shares remain well below levels seen earlier in the year.

The group is in the middle of a major restructuring, with plans to demerge Primark, and investors are weighing the prospects of the separate businesses.

Annual Results

For the 52 weeks to 12 September 2026, ABF reported a pretax profit of about £1.3 billion, around 10% below the previous year, with results broadly in line after a September trading statement that removed much of the surprise. Chief Executive George Weston said the figures reflected a challenging operating environment and macroeconomic headwinds.

Shares fell about 3% to 1,887.5p on the day.

Primark: Soft Sales, Demerger Ahead

Primark's like-for-like sales were around 2% lower for the year, with a decline of 2.4% in the third quarter easing to around 2% in the fourth. Retail Revenue grew 4% to £2.92 billion in the quarter, helped by new stores, and the US is a bright spot with fourth-quarter sales up about 11%. The Business has also bought a distribution centre from boohoo to support home delivery.

ABF confirmed that the Primark demerger is progressing well and is set to complete in December 2027, following a strategic review.

Sugar Slump

Sugar was the main drag, with an adjusted operating loss of £47 million, driven by lower average selling prices in Europe compared with 2025. The group has closed a bioethanol plant and restructured its Spanish business, and management noted a recent positive turn in European and global sugar pricing that should benefit future years.

Agriculture revenue fell 13% in the fourth quarter, adding to weakness in the Sugar and Agriculture segment that will be separated from Grocery and Ingredients.

Grocery and Ingredients

Grocery has been resilient, led by Twinings, Ovaltine and other international brands, but management trimmed the profit outlook for the coming year. Ingredients adjusted operating profit fell 8% to £238 million because of soft Demand for bakery ingredients in the United States, although specialty ingredients grew well. Next year's Ingredients profit is expected to be broadly in line, with start-up costs for a new yeast Facility in India offsetting growth.

A series of investor education events will follow, covering the three reporting segments after the demerger: Grocery, Ingredients and Sugar and Agribusiness.

Dividend and Capital

Total dividends were cut sharply in the previous year, and the group announced a share buyback programme in 2025, though Capital returns will depend on cash generation and the structure of the demerged companies. Investors are watching how Debt and pensions will be allocated.

The valuation is depressed relative to history, which some see as an opportunity if Primark and the other businesses can be re-rated after separation.

Demerger Rationale

The board believes that separating Primark from the rest of the group will let each business be valued on its own merits and allocate capital more effectively. Primark, a high-volume value fashion retailer with growing international exposure, has very different Investment needs from the food and ingredients businesses.

The remaining group will be organised into Grocery, Ingredients and Sugar and Agribusiness, and investors want clarity on how debt, pension liabilities and central costs will be allocated.

Risks to Consider

Primark's recovery depends on consumer confidence and weather, as seen when a heatwave dented summer sales, while sugar remains exposed to oversupply and price swings in Europe. Demerger costs, execution risk and the possibility of further profit downgrades could also weigh on the shares.

Management itself has said it remains cautious about consumer sentiment and inflation, so the near-term trading outlook is not expected to improve quickly.

What Investors Are Watching Next

Attention will focus on Primark's trading through the key Christmas period, progress towards the December 2027 demerger, sugar prices and the profile of the new standalone companies. The trading statement and interim results in the spring will test whether profit declines are stabilising.

Consumer confidence, Inflation and currency moves will also influence the shares, along with any commentary from the investor education sessions.