Associated British Foods (ABF) H1 2025 earnings summary

Executive summary

• Group revenue for H1 2025 was £9,509m, flat year-over-year at constant currency, with growth in Retail and Ingredients offset by declines in Sugar and Agriculture.

• Adjusted operating profit fell 10% to £835m, mainly due to a significant loss in Sugar, while Retail, Grocery, and Ingredients delivered profit and margin growth.

• Interim dividend maintained at 20.7p per share; share buybacks of £422m completed YTD, with £169m more planned for the year.

• Strategic reviews underway for underperforming segments: Vivergo (bioethanol), Allied Bakeries, and Spanish sugar.

• The Group maintained a strong balance sheet, with a leverage ratio of 1.0x and continued investment in capacity and technology.

Financial highlights

• Adjusted earnings per share decreased 8% to 83.6p, benefiting from a lower share count due to buybacks.

• Free cash flow was £27m, reflecting lower operating profit and seasonal working capital outflow; capital expenditure was £0.6bn.

• Net debt including leases at £2.8bn, leverage at 1x, and cash balance at £201m.

• Non-cash impairment charge of £104m recognized in Sugar, mainly in Spanish business Azucarera (£101m) and Vivergo (£3m).

• Interim dividend per share at 20.7p; ongoing share buybacks totaling £43.7m completed in 2025.

Outlook and guidance

• Full-year guidance unchanged except for Sugar, now expected to post an adjusted operating loss of up to £40m due to low European sugar prices and bioethanol losses.

• Retail (Primark), Grocery, and Ingredients outlooks remain positive, with continued growth and stable margins expected.

• U.S. tariffs not expected to have a material group impact in 2025; ongoing monitoring and mitigation actions in place.

• Group remains well positioned for the medium term, supported by strong balance sheet and cash generation.