Why does Associated British Foods still expect lower annual profit for 2026, despite Primark and grocery revenue growth?

Associated British Foods still expects Group adjusted operating profit and adjusted EPS in 2026 to be below last year’s £1.73 billion primarily due to a 4% revenue decline in its sugar business, where the duration and severity of the Middle East conflict have increased gas price expectations for next year, negatively impacting its European profit outlook; the group explicitly stated that, aside from sugar, its full-year outlook is unchanged, confirming sugar’s drag as the key factor behind the lowered profit expectation.

What is the current timeline for the Primark demerger, and what does AB Foods say about its progress?

AB Foods confirmed it remains on track for the demerger of Primark from its food businesses to become effective before the end of the 2027 calendar year — a timeline first announced in April — and reiterated this update without qualification or delay in its latest statement.

Primark Owner AB Foods Still Expects Lower Annual Profit

Jun 30, 2026

Associated British Foods forecasts lower annual profits citing flat third-quarter revenue and sugar business declines driven by elevated gas prices. The conglomerate remains on track to demerge Primark by the end of 2027 despite the challenging outlook.

reuters

2026-04-20

Associated British Foods Poised to Reveal Primark and Food Business Demerger Plan

2026-06-30

Primark Owner AB Foods Still Expects Lower Annual Profit

Primark Owner AB Foods Still Expects Lower Annual Profit

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