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Primark-Penneys Owner Forecasts Further Profit Decline
- On Tuesday, Associated British Foods forecast another profit decline this year after reporting a 14% fall in 2025/26, as deeper Sugar losses and lower underlying sales at its Primark fashion chain weighed on earnings.
- Bosses at the consumer giant reported adjusted pre-tax Profits slipped 14% to £1.46 billion for the year to September 12, citing a "challenging" environment and "macroeconomic headwinds" impacting performance.
- In the 2025/26 year, Primark's adjusted operating Profit fell 12% to £1 billion, as Like-for-like sales fell 2.6%, while grocery Profit remained broadly in line with 2025/26 levels.
- Sugar losses widened to £47m and are expected to deepen in a range of £70m to £170m in 2026/2027, prompting the group to expect adjusted operating Profit and EPS below 2026 levels.
- Associated British Foods confirmed it remains on track to complete the demerger of Primark, which trades as Penneys in Ireland, from its food businesses in December 2027 to deliver on long-term growth prospects.
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Primark profits fall 11% as AB Foods presses ahead with planned stock market split - London Business News
Associated British Foods has reported a 14 per cent fall in adjusted pre-tax profits to £1.46bn, as weaker consumer spending and pressure on Primark’s retail performance weigh on the group… The post Primark profits fall 11% as AB Foods presses ahead with planned stock market split appeared first on London Business News
Coverage Details
Total News Sources17
Leaning Left5Leaning Right1Center6Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 42%
C 50%
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