Associated British Foods, the owner of Primark, reported results on Tuesday 3 November for the financial year to 12 September 2026. Adjusted pre-tax profit fell 14% to £1.46bn. The company expects profit to fall further in 2027.
The numbers: flat revenue, lower profit
Group revenue was £19.58bn, almost unchanged on the previous year. Adjusted operating profit fell to £1.508bn. The dividend was held at 63p per share.
In Retail, mainly Primark, adjusted operating profit fell 12%, with a margin of 10.2%. The company blamed investment in prices, marketing and digital, and a “challenging consumer environment”.
The key difference was by market. UK like-for-like sales rose 0.5%. In continental Europe they fell 4.7%. Spain and Portugal were broadly flat; Italy, Germany and France declined.
Sugar drags the result down
The group’s biggest problem is not clothing but sugar. The Sugar division made an adjusted operating loss of £47m, mainly due to lower European prices. For 2027 the company expects a loss of £70m–£170m in that division. Risks include gas prices, African production and currency moves.
AB Foods shares fell about 3% on Tuesday, the biggest drag on the FTSE 100.
Primark to become a separate company
The group confirmed that the demerger of Primark from its food business is “progressing well” and should complete in December 2027. Separate capital markets days are planned between April and July 2027. Primark expects a margin of around 10% in 2027.
What it means for Poles in the UK
Our view: Primark is cutting margins to keep customers – good news for shoppers, but a signal of caution for staff and suppliers.
Shoppers. The company says it is investing in prices, meaning it is trying not to raise them despite higher costs. For families on a budget this matters.
Workers. Many Poles work in retail and warehousing. Falling profit on flat sales usually means more pressure on costs. No job cuts have been announced. Under UK law, an employer planning 20 or more redundancies at one establishment within 90 days must hold collective consultation, and employees with two years’ service are entitled to statutory redundancy pay.
Polish businesses. Suppliers and subcontractors to large chains should expect tougher price negotiations in the year before a demerger.
Investors. Those holding AB Foods shares in an ISA or pension should follow the demerger timetable – afterwards they will hold shares in two companies.
Sources:
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