Associated British Foods (ABF) H2 2025 earnings summary

Executive summary

• Group revenue declined 1% to GBP 19.5 billion, with adjusted operating profit down 12% to GBP 1.7 billion and adjusted EPS down 11% to 174.9p.

• A comprehensive review of group structure is underway, considering a potential split into separate Retail and Food businesses, with no final decision yet.

• Strong cash generation and disciplined capital allocation supported GBP 1.2 billion in capital investments and continued shareholder returns.

• Strategic actions included closing the Vivergo bioethanol plant, restructuring Spanish sugar operations, and acquiring Hovis Group.

• Despite challenges, robust results were delivered in other segments, and a new GBP 250 million share buyback program was announced for 2026.

Financial highlights

• Group revenue was GBP 19.5 billion, down 1% at constant currency, with a GBP 450 million negative FX impact.

• Adjusted operating profit was GBP 1.7 billion, down 12% at constant currency, with a 13% decline at actual rates due to FX.

• Free cash flow was GBP 648 million, down from GBP 1.4 billion last year.

• Capital expenditure was GBP 1.2 billion, in line with last year.

• Return on average capital employed fell to 15.5% from 18.1%.

Outlook and guidance

• Growth in adjusted operating profit and adjusted EPS is expected for FY2026.

• Primark's consumer environment is expected to remain subdued, with new space contributing around 4% to sales.

• Grocery and Ingredients profits are expected to be broadly flat, with some improvement in Sugar.

• Ingredients and Agriculture profits expected to be stable; Sugar to improve profitability but face continued low prices.