Associated British Foods (ABF) investor relations material

Executive summary

• Board confirmed the demerger of Retail (Primark) and Food businesses, targeting completion by end of 2027, with shareholders to receive shares in both entities and aims for clearer governance and investment focus.

• H1 2026 group adjusted operating profit fell 17–18% year-over-year; adjusted EPS dropped 15%, mainly due to lower profits in Primark, grocery, and sugar.

• Primark showed strong progress in the UK with like-for-like sales growth and market share gains, but Europe remained weak; US sales grew 12%.

• Food businesses faced challenges in US oils and bakery ingredients; sugar segment underperformed due to low European prices and posted an adjusted operating loss.

• Significant capital investment and leadership changes, including new Group CFO and Primark CEO.

Financial highlights

• Group revenue was £9,470m–£9.5bn, flat year-over-year at actual rates but down 2% at constant currency.

• Group adjusted operating profit was £691m, down 17–18% year-over-year.

• Adjusted EPS was 70.7p, down 15% year-over-year.

• Free cash flow improved to £71m from £27m last year.

• Interim dividend maintained at 20.7p per share; share buybacks ongoing with £133m completed in H1 2026.

Outlook and guidance

• Full-year adjusted operating profit and EPS expected to be below last year, with profit phasing weighted to H2.

• Primark’s full-year adjusted operating margin expected at ~10%; 4% sales growth targeted from store rollouts.

• Grocery and Ingredients segments expected to improve in H2; Sugar to remain loss-making for the year.

• Guidance assumes manageable cost impacts from Middle East conflict but notes risk of further consumer demand deterioration.