Overview
Associated British Foods plc reiterated its forecast for a lower full‑year adjusted operating profit and earnings per share in 2026, stating that profit will remain below the 2024/25 level. Analysts, based on LSEG data, had been expecting full‑year adjusted operating profit of approximately £1.55 billion, down from £1.73 billion in the prior year.
The group’s third‑quarter revenue was essentially flat at £5.3 billion. Primark’s sales grew 3 % in constant currency, driven by new store openings, while like‑for‑like sales fell 2.2 % amid a challenging consumer environment across most markets. Grocery revenue increased 1 %, with Twinings performing well in key markets, and Ingredients revenue rose 3 %. Agriculture revenue declined 14 % due to lower compound‑feed sales. The sugar division saw revenue fall 4 % and the company now expects to record an adjusted operating loss between £25 million and £75 million for the full year.
The firm highlighted that the duration and severity of the Middle‑East conflict have raised gas price expectations for the next year, affecting the economics of its European beet crop and potentially triggering onerous contract provisions. It warned that the sugar division could deteriorate further into 2027.
Shares fell 2.8 % in London trading by 07:59 GMT. AB Foods confirmed that the planned demerger of Primark from its food businesses remains on track for completion before the end of calendar year 2027, and the full‑year outlook otherwise remains unchanged.