5 publishers · first seen Tue, 03 Nov 2026 10:30 UTC · updated Tue, 03 Nov 2026 18:50 UTC
Associated British Foods (ABF), owner of Primark, has reported a 14% drop in pre-tax profits to £1.46 billion for the year to September 12, citing a challenging consumer environment and macroeconomic headwinds. The company remains cautious about consumer sentiment and inflation, with profits expected to fall again next year due to weakness in its sugar operation. Despite the challenges, ABF plans to proceed with the demerger of Primark by December 2027, leaving a food-focused standalone business. Primark's sales increased by 4% to £9.8 billion, driven by new store openings in Europe, the US, and the Middle East, although like-for-like sales were 2.6% lower. ABF's grocery division saw a 3% increase in sales to £4.2 billion, with growth in sports nutrition and Ryvita, but Twinings was impacted by lower sales in the UK and France due to the hot summer affecting tea demand.
ABF's CEO, George Weston, emphasized the company's focus on driving financial performance and delivering growth opportunities through capital investments.
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