Associated British Foods Warns Profit

Associated British Foods, owner of Associated British Foods — Primark, announced that it expects its annual profit to be below last year's level, primarily due to a loss-making sugar business. The sugar division's performance has been negatively impacted by lower selling prices in Europe, volume declines in Tanzania, higher imports in South Africa, and increased gas price expectations stemming from the Middle East conflict. While Associated British Foods — Primark's revenue increased by 3%, like-for-like sales fell by 2.2% due to a challenging retail environment, although US sales showed strong growth. The group reiterated its plan to demerge Associated British Foods — Primark from its food businesses by the end of 2027. Analysts had previously forecasted a lower adjusted operating profit for Associated British Foods in 2026 compared to 2024/25.