Associated British Foods (ABF) is considering separating its Primark retail arm from its food operations following a strategic review aimed at maximising long-term value.
The company stated: “Although no decision has been taken, the outcome of this review may lead to the board deciding to undertake a separation of the Primark and food businesses.”
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The review is being conducted with input from ABF’s largest shareholder, Wittington Investments, which aims to retain a majority stake in both businesses.
Michael McLintock, chairman of Associated British Foods, commented: “Given the scale that Primark has now attained and the need for better understanding of our food businesses, the board has been undertaking an in-depth review of the future shape of ABF to assess whether a separation of the Primark and food businesses would be a better structure in the years ahead.”
Rothschild & Co is advising the board on the process.
The announcement came as AB Foods reported lower revenue and profits for the fiscal year that ended on 13 September 2025.
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By GlobalDataGroup revenue fell to £19.45bn ($25.42bn) from £20bn, down 3% at actual exchange rates and 1% at constant currency.
Company revenue decreased by 1%, with growth in retail offset by a decline in sugar.
Adjusted operating profit declined 13% to £1.73bn (12% lower at constant currency), while adjusted profit before tax also dropped 13% to £1.69bn.
On a statutory basis, operating profit was down 23% to £1.48bn and profit before tax fell 26% to £1.41bn.
Retail sales rose 1% to £9.5bn, supported by store openings in Europe and the US that contributed 4% to sales growth.
UK like-for-like sales improved in the second half.
Europe delivered a strong first half followed by weaker trading later in the year.
Adjusted operating profit in retail increased 2% to £1.1bn, with an adjusted operating margin of 11.9%.
In grocery, international brands recorded good sales growth, offset by US oils and Allied Bakeries. Ingredients posted strong growth in adjusted operating profit.
Associated British Foods CEO George Weston stated: “I fully support the board’s review of the group structure and will be closely involved in the process and any outcome. Within ABF we have two great businesses, but one strong culture of long-term value creation driven by the dedication and excellence of our people.
“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.”
