Companies

AB Foods weighs split between Primark and food divisions

Nov 13, 2025 United Kingdom

After reporting a 13% full year adjusted operating profit decline, driven by the weak performance of its sugar unit, Associated British Foods has announced that it is considering splitting its Primark and food divisions

In the twelve months to the 13^thof September 2025, Associated British Foods recorded a revenue of 19.46 billion British pounds (22.04 billion euros), reflecting a 3% decrease (or a 1% decrease on a constant currency basis), as compared to the previous year. The company highlighted that growth in the Retail division was offset by a decline in the Sugar division.

In line with this, the group’s adjusted operating profit for the full year declined year-on-year by 13%, or 12% on a constant basis, to 1.73 billion British pounds (1.95 billion euros).

Conversely, Primark’s sales for the full year grew by 1% year-on-year, reaching 9.49 billion British pounds (10.7 billion euros). The store rollout programme contributed 4% to growth, with solid execution across key markets in Europe and the US. Although the UK and Ireland improved in the second half, they remain the weakest regions at the moment. The retailer’s adjusted operating profit rose by 2% to 1.13 billion British pounds (1.27 billion euros).

In this context, the Board of AB Foods has revealed that a review is being conducted, in consultation with ABF’s largest shareholder, Wittington Investments, to assess the separation of the Primark and food businesses. This review is taking into account the scale attained by the fashion retailer and the need for a better understanding of the food divisions.

In addition to Primark, which operates 476 stores across 18 countries and accounts for over half of AB Foods’ profits, the group owns well-known grocery brands such as Ovaltine, Ryvita and Twinings, as well as significant interests in the sugar, agriculture and ingredients sectors.

George Weston, CEO of the group said: “Our unique and exceptional Food business has historically been less well understood by the financial markets than Primark, yet it has a highly attractive portfolio, deep global expertise and much potential. Primark has an incredibly strong international brand, a powerful customer proposition, and substantial growth opportunities”. “I am very excited by what we can deliver in the future for both Food and Primark”.

1 GBP = 1,13 EUR

Image Credits: corporate.primark.com

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