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Associated British Foods: weak second-half performance

Associated British Foods sales across the second half disappointed investors, and weakness in the Sugar division continue.
Associated British Foods ABF NEW - the front of a Primark store in Rotterdam.jpg

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Associated British Foods released a trading update ahead of its financial year end on 13 September.

In the important retail division, Primark’s like-for-like (LFL) sales are expected to decline by 2% (consensus: -1%) over the second half. In the UK & Ireland, sales were flat despite the favourable weather. Sales growth remains “strong” in the US, while trading across Europe was weaker.

Grocery sales are expected to be flat over the second half (consensus: +2%), with underlying operating profits set to be “slightly below” prior group expectations due to one-off restructuring costs.

The Sugar division is expected to deliver an underlying operating loss of around £40mn, in line with market forecasts. Most of these losses relate to Vivergo, which is in the process of being shut down.

The shares fell 9.4% 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 Refinitiv. 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.This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.Non - independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place(including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing.Please see our full non - independent research disclosure for more information.
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Written by
Aarin Chiekrie
Aarin Chiekrie
Equity Analyst

Aarin is a member of the Equity Research team. Alongside our other analysts, he provides regular research and analysis on individual companies and wider sectors. Having a keen interest in global economics, he knows how macro-events can impact individual companies.

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Article history
Published: 10th September 2025