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Photo by Mike Kemp/In Pictures via Getty Images In Pictures via Getty Images Associated British Food’s (ABF) share price reversed slightly on Tuesday, as news of a possible split of its Primark and food businesses failed to offset softer-than-expected full year results. At £22.57 per share, ABF shares were last trading 1% lower on the day. ABF’s group revenues dropped 3% over the 52 weeks to 13 September, to £19.5 billion. The FTSE 100 company said that “growth in Retail [was] offset by a decline in Sugar.” At constant currencies, sales dipped 1% year on year. Adjusted operating profit dropped 13% and 12% at actual and stable exchange rates respectively, to £1.7 billion. Adjusted earnings per share (EPS) reversed 11% to 174.9p. Primark Review At Primark, sales last year were unchanged at actual currencies at £9.5 billion, though this was up 1% at constant currencies. Revenues were boosted by new store space, which contributed 4% to full-year sales growth. Adjusted operating profit at the fashion unit rose 2% on both metrics to £1.1 billion. Adjusted operating profit margins rose 20 basis points, to 11.9%. In the UK and Ireland, Primark’s sales dropped 1% over the course of fiscal 2026. Revenues were down 4% over the first half, which ABF attributed to “a decline in the UK clothing retail market and particularly weak shopping activity within elements of Primark’s customer base.” MORE FOR YOU However, Primark’s sales rebounded 1% over the second half of the year as market conditions improved. Retail sales in Mainland Europe rose 2% during financial 2026. In the US turnover soared 20% as store expansion continued. ABF said it is considering separating Primark from its other businesses “with a view to maximising long-term value,” and has recruited Rothschild & Co to help with its review. The review is being carried out in consultation with Wittington Investments, its largest shareholder which is controlled by the Weston Family. Profits Tipped To Rebound Chief executive George Weston said “this was a year of intense strategic and operational activity within ABF,” adding that “most of our businesses delivered robust financial results, while navigating a challenging external backdrop.” He said that Primark’s “encouraging” second-half trading improvement “reflects renewed focus on our value proposition, a stronger product offer and enhanced digital capabilities.” However, he cautioned that “we have more to do in some of Primark’s European markets and there are plans in place.” New retail space across Europe and the US is tipped to contribute a further 4% to annual sales growth in financial 2026. Weston added that “we are confident in the group outlook for 2026 although much depends on the consumer environment, which is particularly unpredictable at the moment.” ABF said it expects adjusted operating profit and adjusted EPS to both rise this year. Long Term Boost? Analyst Aarin Chiekrie of Hargreaves Lansdown noted that “Associated British Foods’ results were a touch soft, but news of a potential spin-off of its beloved Primark and Food businesses grabbed headlines on the day.” He noted that any separation “would likely be beneficial to the valuation in the long run but given the current cyclical challenges at Primark and the Food businesses, it’s unlikely to happen in the next year.” Editorial StandardsReprints & Permissions
