STOCKS | Associated British Foods Revenue Grows Despite Sugar and Grocery Pressures

Associated British Foods reported full-year revenue of £19.58 billion, up from £19.46 billion in the previous financial year, while pretax profit fell 10% to £1.28 billion. According to Sina Finance, the company is moving ahead with plans to separate Primark from its food business, with the split expected to be completed in December 2027. Primark’s annual sales rose 2% to £9.8 billion. The group’s food division includes food ingredients, sugar, agriculture, and grocery businesses. Its sugar business recorded an adjusted operating loss of £47 million, which the company attributed to lower average selling prices in Europe, and it expects the loss to widen to between £70 million and £170 million in the next financial year. Associated British Foods also lowered its grocery business outlook, revising its September guidance. It now expects grocery EBIT to be broadly in line with the previous year, rather than slightly above the 2026 financial year. Barclays analyst Matthew Clements said the downgrade reflected a slower-than-expected decline in cocoa prices and a difficult consumer environment that squeezed margins. He wrote that although the lower outlook was disappointing, it would not significantly worsen overall market sentiment.