British food and retail group Associated British Foods reports slightly higher revenue but lower earnings for the broken financial year 2025/2026, while clothing chain Primark shows increased sales but weaker profitability.
Revenue rose 0.6 percent to GBP 19 582 million (19 459). In constant currencies, revenue decreased by 1 percent.
Clothing chain Primark’s revenue rose to GBP 9 820 million (9 489), an increase of 4 percent in reported currency and 2 percent in constant currency.
Primark’s adjusted operating profit decreased to GBP 1 005 million (1 126), corresponding to a decline of 11 percent in reported currency. The adjusted operating margin fell to 10.2 percent (11.9).
CEO George Weston states that earnings were affected by a challenging market environment and macroeconomic headwinds. Within Primark, the company has focused on strengthening its customer offering through lower prices, an improved product range and increased investment in marketing and digital channels. The initiatives have produced positive results in the UK and in womenswear, and will now be expanded to more markets and product categories.
ABF’s adjusted operating profit amounted to GBP 1 508 million (1 734), a decrease of 13 percent. The adjusted operating margin was 7.7 percent (8.9).
Operating profit was GBP 1 327 million (1 483), with an operating margin of 6.8 percent (7.6).
Adjusted profit before tax amounted to GBP 1 457 million (1 696), a decrease of 14 percent.
Profit before tax was GBP 1 276 million (1 413), a decrease of 10 percent.
The board proposes a final dividend of 42.3 pence per share. Together with the interim dividend of 20.7 pence, the total dividend will be 63.0 pence per share (63.0).
For the upcoming financial year 2026/2027, Associated British Foods expects both adjusted operating profit and adjusted earnings per share to be lower than in the past year, primarily due to developments in the sugar business.
Within Primark, new stores and franchise operations are expected to contribute around 4 percent to sales growth. The adjusted operating margin is expected to amount to approximately 10 percent, excluding cost effects related to the planned demerger.
At the same time, the company reiterates its objective that expansion of store space will contribute approximately 4–5 percent annually to Primark’s total sales growth for the foreseeable future.
Within the sugar business, an adjusted operating loss of between GBP 70 million and GBP 170 million is expected.
The demerger of Primark from the food business is expected to be completed in December 2027.
Key figures, GBP million2025/20262024/2025ChangeRevenue19 58219 459+0.6%Revenue growth, constant currency-1%Adjusted operating profit1 5081 734-13%Adjusted operating margin7.7%8.9%-1.2 ppOperating profit1 3271 483-11%Operating margin6.8%7.6%-0.8 ppAdjusted profit before tax1 4571 696-14%Profit before tax1 2761 413-10%Dividend, pence/share63.063.00%Primark revenue9 8209 489+3.5%Primark revenue growth, constant currency+2%Primark adjusted operating profit1 0051 126-10.7%Primark adjusted operating margin10.2%11.9%-1.7 ppPrimark operating profit1 0031 120-10.4%Primark operating margin10.2%11.8%-1.6 pp
