How Is Associated British Foods Plc (LSE:ABF) Trading Today?

Associated British Foods Plc (LSE:ABF) shares edged higher by 0.50% to around 2,016.0p today. The move comes shortly after the group published annual results for the 52 weeks to 12 September 2026 and set out its plans for the separation of Primark.

The group kept its total Dividend at 63.0p per share, with a final dividend of 42.3p, and completed £253 million of share Buybacks during the year. It ended the period with net cash before Lease liabilities of £305 million.

For investors in LSE:ABF, the key theme is the transition from a combined food and retail group into two more focused businesses.

About Associated British Foods Plc

Associated British Foods is a diversified international group with businesses in food, ingredients, agriculture and retail. Its food portfolio includes well-known brands such as Twinings, Ovaltine, Kingsmill, Jordans Dorset Ryvita and Patak's, alongside ingredients businesses including AB Mauri, one of the world's leading yeast and bakery ingredient suppliers.

The group also owns AB Agri and a sugar business, and operates Primark, the value fashion retailer with stores across Europe, the US and Franchise territories.

This breadth means that LSE:ABF has exposure to consumer staples, global ingredients Supply chains and discretionary retail within a single listing.

Annual Results Overview

Group Revenue for the year to 12 September 2026 was around £19.6 billion, broadly in line with expectations. Chief Executive George Weston described the operating environment as challenging, while pointing to multi-year capital projects completed in Grocery and Ingredients that provide new capacity and capabilities to support growth.

Total Primark sales increased by around 2% for the year, with growth coming mainly from new store space in Europe and the US. The retail division delivered an adjusted Operating Margin of approximately 10%.

The group's Balance Sheet remained in good order, with total net Debt including leases of £2,845 million and net cash before lease liabilities of £305 million.

Primark Demerger Plans

The group is progressing plans to separate Primark from its food businesses, with a clear timetable set out alongside the annual results. The structure is intended to give each Business its own capital allocation framework, management focus and investor base.

Management has said that Primark is moving towards demerger readiness, and that the guidance for the coming year does not yet include the costs associated with that process. The 2027 financial year will also include 53 weeks, which will affect year-on-year comparisons.

Primark's Growth Plans

Primark's value proposition remains central to the retail story. During the year the business took steps to refresh its customer offer, improve its product range and invest in value credentials.

For the 2027 financial year, Primark expects an adjusted operating margin of approximately 10%, supported by a contribution of around four percentage points to sales growth from new store space in Europe, the US and franchise territories. The group is also expanding digital services, including rolling out the Click and Collect concept towards home delivery in selected markets.

Food, Ingredients and Agriculture

Grocery delivered solid results, supported by a portfolio of established brands with leading positions in categories such as tea, bread and speciality foods. Ingredients benefits from global Demand for baking, nutrition and food Manufacturing inputs.

The completion of significant capital projects in these divisions adds capacity, and management has pointed to improved efficiency and growth potential as these facilities ramp up.

Capital Returns

The board maintained the full-year dividend at 63.0p per share, and the group completed £253 million of buybacks during the year. A balanced approach to dividends, Investment and share repurchases continues to feature in the group's capital allocation.

With Leverage at modest levels, the group retains flexibility to fund investment in stores, capacity and brands.

Growth Catalysts

Several themes could shape the next phase for LSE:ABF. New Primark stores and franchise partnerships are expected to add to sales, while digital initiatives can improve customer reach and convenience. In the food businesses, new capacity and Brand investment may support Volume growth over time.

The separation of Primark could also bring greater clarity to how each business is assessed, with each able to pursue its own strategy.

Factors to Monitor

Consumer demand, input costs, currency movements and the pace of store openings are all part of the operating backdrop. Preparing for a demerger also involves one-off costs and operational work.

Investors typically follow Primark like-for-like sales, margin progress and updates on the separation timetable.

Conclusion

Associated British Foods' 0.50% gain to around 2,016.0p today follows annual results that maintained the dividend at 63.0p, completed £253 million of buybacks and set out a clear path to separate Primark.

Store expansion, brand investment, capacity in food and ingredients, and the demerger timetable remain the central themes for LSE:ABF.