Highlights

  • Group revenue decreased 1% at constant currency, impacted by weaker Sugar performance.
  • Adjusted operating profit declined 12% to GBP 1.73bn, and adjusted EPS fell 11% to 174.9p.
  • Board reviewing potential separation of Primark and Food divisions to enhance long-term value.

Associated British Foods plc (LSE:ABF) announced its results for the 52 weeks ended 13 September 2025, showing lower revenue and profit as Retail gains were offset by weakness in Sugar.

Group revenue was GBP 19.46bn, down 3% on an actual basis and 1% at constant currency. Adjusted operating profit fell 12% to GBP 1.73bn, while adjusted profit before tax declined 13% to GBP 1.70bn. Adjusted earnings per share decreased by 11% to 174.9p.

Operating profit was GBP 1.48bn, down 23% from the prior year, and profit before tax dropped 26% to GBP 1.41bn. Free cash flow was GBP 648m, compared with GBP 1.36bn in FY24. Total dividends were maintained at 63.0p per share, including an interim dividend of 20.7p and a proposed final dividend of 42.3p.

Segmental Performance

Retail (Primark): Sales rose 1% to GBP 9.5bn, supported by store rollouts across Europe and the US, contributing around 4% to sales growth. Adjusted operating profit increased 2% to GBP 1.1bn, with an 11.9% margin. UK like-for-like sales improved in the second half as Primark refocused on its value offering and product range.

Grocery: International brands delivered good growth, offset by expected lower volumes in the US oils business and at Allied Bakeries.

Ingredients: Reported strong growth in adjusted operating profit driven by continued product demand.

Sugar: Recorded breakeven results excluding the Vivergo bioethanol plant. Restructuring in Spain and lower beet prices in the UK are expected to support profitability in FY26.

Agriculture: Adjusted operating profit declined due to one-off costs and lower contributions from its joint venture.

Shareholder Returns and Financial Position

ABF completed GBP 594m of share buybacks during the year and announced a new GBP 250m buyback programme to be completed before the end of FY26. Net cash before lease liabilities stood at GBP 390m, while total net debt rose to GBP 2.63bn. Return on average capital employed was 15.5%.

Strategic Review and Outlook

The Board is conducting a review of the Group’s structure, which may lead to the separation of the Primark and Food businesses. Rothschild & Co is advising on the process, in consultation with ABF’s largest shareholder, Wittington Investments.

Michael McLintock, Chairman of Associated British Foods, said:

“Given the scale that Primark has now attained and the need for better understanding of our Food businesses, the Board has been undertaking an in-depth review of the future shape of ABF to assess whether a separation... would be a better structure in the years ahead.”

Share performance of ABF

ABF’s shares traded at GBX 2,271.0 per share on 04 November 2025, down by 0.39% from its previous close of GBX 2280.0.