Aarin Chiekrie, equity analyst, Hargreaves Lansdown:
“Associated British Foods’ (ABF) fourth-quarter results have left investors hungry for more as its crown jewel, Primark, is expected to deliver a like-for-like sales decline of 3%. Growth in the UK and Ireland was barely positive, while sales in Continental Europe fell by more than 4% as consumer confidence remains particularly weak. Primark also announced plans to introduce home delivery across Great Britain. While this will likely help boost the top line, running an efficient and profitable delivery and returns service is no easy task, and with Primark’s low price point, doing it profitably is even more difficult. In the meantime, new store openings are the key lever being pulled to drive the top line higher, contributing 5% growth and helping total Primark sales to rise by 2% over the period. Work on the planned demerger of Primark is progressing smoothly and is now expected to be completed in December 2027.
It was a mixed performance from the rest of ABF’s food businesses, with growth across Grocery and Ingredients largely offset by continued declines in the Sugar and Agriculture divisions. Performance in the Sugar division continues to be held back by lower yields following a period of unfavourably hot and dry weather, as well as weaker average selling prices in Europe. All in, ABF reiterated its rather vague full-year guidance for group-level underlying operating profits to fall below last year’s level of £1.7bn. But market forecasts are sitting around 13% lower at £1.5bn, which feels more realistic to us. Today’s update has done little to hint that a sharp improvement in fortunes is around the corner for ABF, and profitability in the Sugar division looks set to worsen still in 2027, offsetting progress in other parts of the business.”
Notes to Editors
HL is the UK’s largest investment and savings platform for private investors and more than 2.2 million clients trust us with £205 billion (as of June 2026).
We help Britain build wealth, with confidence. Our promise is simple: to provide the best products, the best support and the best value. Founded in 1981, we’ve been helping people save and invest for a better financial future for more than four decades. We offer a lifelong, secure home for our clients’ investments and savings, combining great value with outstanding service, to make managing your money easier at every stage of life.
Our award-winning Savings & Resilience Barometer measures the nation’s financial resilience across our 5 to Thrive pillars, equipping people with the tools they need to strengthen their financial futures.
Saving and investing is for the whole family, and to support intergenerational wealth transfer, we’ve removed all platform charges and share dealing fees on our Junior ISA, meaning kids go free, and we’ve reduced the platform fee on our Lifetime ISA to 0.25%, supporting those savings for their first home or for retirement.
Regular saving into all funds, FTSE 350 shares, and selected investment trusts and ETFs is free.
Our clients also have access to the most comprehensive pension and retirement solution, including SIPP accounts, SIPP Income Drawdown, UFPLS payments and annuities, as well as over 14,000 investment options across funds, shares, ETFs, investment trusts, bonds and gilts.
HL Active Savings is the UK's largest retail cash savings platform that lets savers easily make more of their money and the HL Cash ISA allows savers to manage their Cash ISA portfolio across multiple banks, all within one account.