Associated British Foods’ adjusted operating profit falls 13% as sugar posts £47 million loss

Key Facts

Associated British Foods reported results on November 3 for the 52 weeks ended September 12, 2026, showing adjusted operating profit down 13% to £1.508 billion. Adjusted profit before tax was £1.457 billion, down 14%, while adjusted earnings per share fell 11% to 156 pence. The figures came despite a 1% rise in group revenue in actual currency to £19.582 billion, from £19.459 billion, as revenue fell 1% excluding the effect of currency. The company said the decline in the group’s adjusted operating profit was mainly linked to lower profits at Primark. The chief executive said weakness among consumers in certain U.S. categories and lower European sugar prices also affected food-sector earnings.

Primark posted revenue of £9.820 billion, up 4% from £9.489 billion in 2025, but its adjusted operating profit fell 11% to £1.005 billion from £1.126 billion. The adjusted operating margin fell to 10.2% from 11.9%, reflecting that sales growth did not translate into comparable profit growth. In the U.K., the company’s sales rose 2%, like-for-like sales grew 0.5%, and its share of the clothing market was 6.9%. In the U.S., sales grew 13% during the year, and the company opened 14 new stores, bringing its total there to 47 by the end of 2026. ABF said weakness among consumers in some U.S. categories was one of the factors affecting food earnings, as Primark’s performance varied across its markets.

The sugar division was a prominent factor in the decline in results: revenue was £1.966 billion, down 4% in actual currency from £2.047 billion, and 9% at constant currency. The division swung to an adjusted operating loss of £47 million, compared with a loss of £1 million in 2025. ABF attributed the loss mainly to lower European sugar prices and said average selling prices were lower than in the previous year. Continued declines in European prices also led to provisions for onerous contracts, gas costs rose, and expectations of a lower British sugar beet crop following an extended period of hot, dry weather weighed on operating expectations. These factors show that the division’s loss was linked to pressure from prices, inputs and production, not simply to lower revenue.

In July, the company announced plans to reduce its U.K. sugar operating footprint from four sites to three, halting beet processing at its Cantley factory during 2027. It said the change was intended to enable it to meet existing customer demand more efficiently. Exceptional charges in 2026 amounted to about £113 million, including £91 million in non-cash charges and £22 million for restructuring activities that incurred or are expected to incur cash costs. Cantley-related charges included £71 million in impairment and write-offs, along with £9 million in restructuring charges expected to be settled in cash in 2027. The results therefore show the cost of the decision in the current financial year, while beet processing at Cantley will stop next year.

The company warned that a surplus in the European sugar market could persist in the short term because of higher carry-over stocks from 2025, despite expectations of a significant decline in European production during 2027. This market outlook puts continued price pressure in the background of the division’s forecasts, even with the anticipated fall in production. At group level, ABF said it expects profit and earnings per share to decline in 2027, with losses in the sugar division within a range stated in its guidance. The guidance summary presented here did not include a figure for that range, so its value cannot be specified. The company expects to complete the separation of Primark from its food businesses in December 2027, with investor education events expected between April and July of that year.

ABF.L shares closed at 1897.5 pence on November 3, compared with a close of 1943 pence on November 2. The close came on the day the annual results were announced, after the figures showed adjusted earnings declining despite higher nominal revenue. Reuters, via Investing.com, reported that the shares fell 2.8% that day after the results and outlook were published, citing lower earnings and profitability pressures at Primark and sugar. The share-price move is assessed using the recorded session close, without relying on unavailable opening, high or low figures. Looking ahead, the company’s trajectory is tied to sugar restructuring, the European market outlook and steps toward separating Primark during 2027.