Associated British Foods PLC

ABF

Equity

ISIN GB0006731235 / Valor 719064

LSE London Stock Exchange, SETS (2025-10-22)

GBP 22.76+2.75%

Associated British Foods PLC
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About company

Associated British Foods PLC (ABF) is a diversified international food, ingredients, and retail group with a wide range of operations across the globe. Its business segments include agriculture, retail, sugar production, and grocery brands. AB Agri, a subsidiary of ABF, operates internationally, providing a comprehensive range of farm performance services, animal feed, specialty ingredients, and supplements, catering to the needs of farms, feed manufacturers, food producers, and retailers. Primark, another significant part of ABF's portfolio, stands as one of Europe's largest clothing retailers, boasting the highest sales volume in the UK and expanding its footprint in the US, with a total of 432 stores in 16 countries across Europe and the US. In the sugar sector, ABF Sugar is involved in producing a variety of products from sugar cane, sugar beet, and wheat, with operations in Africa, the UK, Spain, and China. The grocery segment of ABF encompasses a range of brands that hold leading positions in global markets, with a notable presence in UK households where nine out of ten use its brands. This diversified business model allows ABF to leverage cross-sector synergies and maintain a strong presence in its respective markets.

Summarized from source with an LLMView SourceSector: Consumer Non-Cyclicals

Revenue and Profit

The Group's revenue stood at £9,509 million, reflecting a 2% decrease compared to £9,734 million in the same period last year, which was in line with expectations. Adjusted operating profit declined by 12% to £835 million, while adjusted earnings per share fell by 8% to 83.6p.

Segment Performance

Retail sales grew by 1% to £4.5 billion, supported by strong growth in Europe and the US, despite a challenging environment in the UK and Ireland. The Grocery and Ingredients divisions also performed well, whereas the Sugar segment recorded an adjusted operating loss of £16 million due to lower European sugar prices and challenges in the Vivergo business.

Cash Flow and Debt

Free cash flow significantly decreased to £27 million from £468 million in the previous year, primarily due to lower operating profit and normal seasonal working capital outflows. Total net debt increased to £2,772 million from £2,496 million, reflecting ongoing investments.

Shareholder Returns

The interim dividend remained unchanged at 20.7p per share. The company completed £422 million of share buybacks in 2025 to date, with an additional £169 million planned for the financial year.

Outlook

Looking ahead, Associated British Foods maintains its full-year outlook with continued investment in key growth initiatives. The Sugar segment is expected to face ongoing challenges, with an adjusted operating loss projected up to £40 million. The company remains confident in its long-term growth prospects, supported by a robust balance sheet and strong performance in Retail, Grocery, and Ingredients.

Summarized from source with an LLMView Source

Key figures

-2.07%1Y

72.4%3Y

33.5%5Y

Performance

27.8%1Y

24.0%3Y

27.7%5Y

Volatility