Associated British Foods PLC

ABF

Equity

ISIN GB0006731235 / Valor 719064

LSE London Stock Exchange, SETS (2026-09-08)

GBP 20.39%

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

Key headline numbers

Revenue £9,470m (H1 2025: £9,509m, in line / (2)% cc). Adjusted operating profit £691m (H1 2025: £835m, (18)% cc). Adjusted profit before tax £663m (H1 2025: £818m). Adjusted EPS 70.7p (H1 2025: 83.6p). Basic EPS 62.7p (H1 2025: 71.0p). Operating profit £657m. Interim dividend unchanged at 20.7p.

Cash, investment and balance sheet

Gross investment £534m (down 4%). Free cash flow improved to £71m (H1 2025: £27m). Net cash before lease liabilities reduced to £3m (H1 2025: £201m); total net debt £3,027m (H1 2025: £2,772m).

Segment performance — Primark

Primark made progress re‑energising its customer offer: UK like‑for‑like sales growth and market share gains, weaker trading in Europe, ongoing investment in stores and digital. Primark rollout (including franchises/US/Europe) expected to add ~4% to 2026 sales. Primark is included in the planned demerger (see below).

Segment performance — Grocery & Ingredients

Grocery and Ingredients broadly as expected. International Grocery brands showing good sales growth and expected stronger H2 profit; US cooking oils and some bakery/yeast businesses weakened by US consumer demand, leaving Ingredients expected to be moderately below last year.

Sugar and Agriculture outlook

Sugar delivered below‑expectations in H1 (lower prices, higher production costs, weather impacts in Tanzania). Management now expects Sugar to record an adjusted operating loss for full year 2026 and has limited visibility into 2027 recovery. Agriculture also expected to be below 2025 after a weak H1.

Outlook and risks

Group expects profit phasing to remain weighted to H2 and reiterates full‑year outlook is broadly unchanged except for Sugar. Group adjusted operating profit margin is expected to be about 10% for the full year, but management warns that the Middle East conflict creates downside consumer demand risk and potential longer‑term cost pressures (energy, freight, fabric).

Exceptional items and APMs

H1 2026 exceptional items were £8m (a non‑cash impairment) versus £104m in H1 2025. The company uses Alternative Performance Measures (APMs) for adjusted results (outlined in note 14 of the announcement).

Corporate action

The Board has decided to proceed with a demerger of the Retail business (Primark) from the Food business (to be called "FoodCo"); on completion ABF shareholders will hold shares in both listed entities (separate announcement released).

Summarized from source with an LLMView Source

Key figures

-8.85%1Y

2.77%3Y

4.87%5Y

Performance

28.7%1Y

25.1%3Y

25.9%5Y

Volatility