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AB Foods Could Spin Out Fashion Chain Primark/Penneys
Primark contributed 65% of AB Foods' operating profit despite a 13% overall profit decline, prompting a review of a possible spin-off to enhance value, CEO George Weston said.
- FTSE 100-listed Associated British Foods told shareholders on Tuesday it would review its group structure, with the review possibly separating Primark from the food business, though no decision is made.
- A fall in sugar and grocery performance prompted Associated British Foods to examine its structure, reporting a 13% profit drop to £1.7 billion for the year to September 13.
- Primark accounted for 65% of the group's operating profit in the year to September 13, with sales rising 1% to £9.5 billion and trading from 475 stores in 18 countries.
- The board said it has been conducting the review to maximise long-term value and is assessing the group's future shape in consultation with Wittington Investments, which remains committed to majority ownership while Rothschild & Co assists.
- Weston told Reuters: `We wouldn't be announcing this review if we didn't think that there was a fair likelihood of it happening`, and AB Foods expects growth in 2026, with much depending on the consumer environment.
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John Mulligan: ABF’s €15bn plan to cut Primark loose might be a decade late
With Primark owner Associated British Foods (ABF) now considering cutting Primark loose in a £13bn (€14.7bn) spin-off, the latest chapter for the Irish-founded retailer is likely to be another page-turner.
·Ireland
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Primark Could Stand Alone as Owner ABF Considers ‘Separation’ of Retail, Food Businesses
Associated British Foods is contemplating a company restructure, which would involve uncoupling the food and fashion businesses. ABF’s largest shareholder, Wittington Investments, would retain majority control of both.
·United States
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Coverage Details
Total News Sources33
Leaning Left8Leaning Right3Center5Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 31%
R 19%
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