Associated British Foods PLC

ABF

Equity

ISIN GB0006731235 / Valor 719064

LSE London Stock Exchange, SETS (2025-11-21)

GBP 21.12+0.62%

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

Retail Performance

Primark achieved a sales growth of approximately 1% in the second half of the financial year, with consistent growth in both Q3 and Q4. The UK and Ireland markets saw improved trading conditions, supported by a strong product offering in womenswear and enhanced digital engagement. Conversely, sales in Europe were subdued, while the US market experienced robust growth of around 23% in H2.

Market Expansion

In the UK and Ireland, Primark increased its market share from 6.6% to 6.8%, driven by strategic store openings and relocations. Spain and Portugal reported a 2% sales growth, whereas France and Italy faced a 4% decline due to weaker consumer environments. Central and Eastern Europe saw significant growth of 9%, while Northern Europe experienced a 2% decline.

Grocery Segment

Grocery sales remained in line with the previous year, bolstered by strong performances from international brands like Twinings and Ovaltine. The US consumer oils sector saw lower sales as anticipated, while the acquisition of Hovis by Allied Bakeries is expected to create cost synergies and enhance profitability.

Operational Restructuring

Associated British Foods undertook significant strategic actions, including the closure of the Vivergo bioethanol plant and restructuring its Spanish sugar business. These measures are anticipated to drive cost efficiencies and position the company for sustainable growth in 2026.

Ingredients and Agriculture

The Ingredients division, including AB Mauri and ABFI, maintained sales in line with the previous year and achieved strong adjusted operating profits. Agriculture sales saw a modest increase of around 1%, supported by specialty feed and additives, despite challenges in some joint ventures.

Summarized from source with an LLMView Source

Key figures

-2.72%1Y

40.3%3Y

6.19%5Y

Performance

27.8%1Y

24.0%3Y

27.7%5Y

Volatility