Associated British Foods (ABF) Trading Update summary

Primark performance and outlook

• Strong trading in Europe and positive store rollout in the US, with effective marketing, especially in Germany.

• UK and Ireland sales declined 4%, with like-for-like sales down 6.0%, impacted by weak autumn trading and cautious consumer sentiment, but market share remains resilient at 6.8%.

• Click & Collect rollout is progressing well, now in 113 stores, outperforming home delivery in online trading and increasing product range accessibility.

• Store rollout contributed around 4% to total sales growth; eight new stores opened, with further progress in refurbishments.

• Margin management remains robust, supported by cost initiatives, controlled markdowns, and geographic diversification.

Group revenue performance

• Group revenue for the 16 weeks to 4 January 2025 was £6,732m, up 0.5% at constant currency but down 2.2% at actual rates.

• Retail (Primark) sales grew 1.9% at constant currency, with strong growth in Europe and the US but declines in the UK and Ireland.

• Grocery revenue rose 0.8% at constant currency, led by Twinings and Ovaltine, offset by declines in some US and UK brands.

• Ingredients revenue increased 3.5% at constant currency, driven by growth in yeast, bakery, and specialty ingredients.

• Sugar and Agriculture segments saw revenue declines, mainly due to lower European sugar prices and soft demand in compound feed.

Grocery, ingredients, and sugar segments

• Grocery portfolio performed well, with strong brand growth in the US and international markets, especially for Twinings and Ovaltine.

• Ingredients segment posted 4% growth, led by AB Mauri in Central and South America and strong performance in enzymes and health/nutrition.

• European sugar profitability is stable, with cost reductions locked in and recovery expected in FY 2026, though revenue fell 2% due to lower prices.

• Vivergo faced low margins due to weak bioethanol prices, risking a potential £10m impact if conditions persist.

• Agriculture revenue declined 4%, with growth in specialty feed and dairy offset by lower compound feed sales in the UK and China.