Associated British Foods (ABF) reported full-year revenue of £19.5bn, down by 1% ignoring exchange rate impacts. A 1% increase in Primark sales was more than offset by a double-digit decline in the sugar division due to low prices across Europe.
Underlying operating profits fell by 12% to £1.7bn, with the decline largely driven by the sugar division turning loss-making.
Free cash flow more than halved to £648mn. Net debt rose from £2.0bn to £2.6bn.
In 2026, ABF expects to deliver underlying operating profit growth at the group level. A review of the group structure is underway, with the potential separation of Primark from its Food businesses being considered.
Total dividends were down 30% to 63p per share. A new £250mn share buyback programme was announced.
The shares were up 2.1% in early trading.
Our view
HL view to follow.
Associated British Foods key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.