LONDON (dpa-AFX) - Associated British Foods plc (ASBFY.PK, ABF.L) reported Thursday that its estimated Group revenue for the 16 weeks to January 3 increased 1% year-over-year on a reported basis, but dropped 1 percent at constant currency rates.
Looking ahead, the company now expect Group adjusted operating profit and adjusted earnings per share to be below last year, mainly reflecting the revised guidance by Grocery and Ingredients segments.
The company now noted, 'While we expect the tough trading conditions to continue in the short term, we remain confident in the overall prospects for the Group.'
The company previously expected to deliver growth in fiscal 2026 adjusted operating profit and adjusted earnings per share, and stated that it was confident in the Group's medium and long-term growth prospects.
In its trading update for the 16 week-period, Associated British Foods noted that Retail segment revenues would grow 4% on a reported basis, while Grocery revenues would be flat. These were partly offset by 3% drop in Ingredients and 2% drop in Sugar segment. Agriculture segment revenues would also be down 4% year-over-year.
Primark has had a challenging start to the financial year, with a mixed performance. In the UK, Primark sales grew around 3%, with like-for-like sales growth of around 1.7% in a difficult clothing market, particularly over Christmas.
Overall, Primark's sales growth in the period was below expectations. The company now expects Primark's sales growth in the first half of 2026 to be in the low single digits.
For the year, the company now expects Primark's adjusted operating profit margin to be approximately 10%, similar to the first half, if current sales trends were to continue in the second half.
The firm previously expected Primark's adjusted operating profit margin to be slightly below last year's underlying adjusted operating profit margin.
The company now expects both Grocery and Ingredients segments to deliver adjusted operating profit for the full year that is moderately below last year. Earlier, Grocery and Ingredients profits were projected to be around the same level as 2025.
Further, the firm continues to expect Agriculture adjusted operating profit to remain in line with 2025, and to improve profitability in Sugar and to deliver a small adjusted operating profit in 2026.
ABF plans to provide final revenue by business segment for the 16 week-period on January 22.
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