ABF considers spinning off Primark from wider business

In its full-year results for the year ended September 13, 2025, ABF said its board has been reviewing its group structure “with a view to maximising long-term value”. While “no decision has been taken”, ABF said the review could lead to Primark being separated from the group’s food businesses.

The review is being conducted with ABF’s largest shareholder, Wittington Investments, and Rothschild & Co has also been drafted in to assist the board.

Primark sales for the period grew 1% to £9.5bn, and adjusted operating profit increased 2% to £1.1bn. The adjusted operating profit margin was 11.9%.

The retailer noted that UK like-for-like sales improved in the second half, after they “renewed [their] focus on Primark’s value proposition and product offer”. While, in Europe, a strong first half was hit by “weaker trading in the second half”.

ABF noted that it had made a “significant step up in investment in digital, brand and product initiatives to drive long-term growth” in Primark during the period.

In terms of outlook, ABF said it continues to “expect the consumer environment to remain subdued” and is focused on “strengthening [their] customer value proposition through our product offer, price and price perception, and digital customer engagement with a view of driving like-for-like sales”.

It added that it had made “good progress” with this in the UK and Ireland, and has plans to roll out similar initiatives in all of our other markets.

ABF said its store rollout programme continues in Europe and the US, where its franchise model is expected to contribute 4% sales growth in 2026.

It noted that the adjusted operating profit margin is expected to be slightly below last year’s as ABF continues to focus on investing in Primark’s growth.

Chief executive of ABF, George Weston, said: “This was a year of intense strategic and operational activity within ABF. Most of our businesses delivered robust financial results while navigating a challenging external backdrop.

“Primark’s improved UK trading in the second half was encouraging and reflects renewed focus on our value proposition, a stronger product offer and enhanced digital capabilities. We have more to do in some of Primark’s European markets and there are plans in place. Significant white space remains as Primark continues its store expansion in existing and new markets and through franchise opportunities. Overall trading in our grocery and Ingredients businesses was as expected. In a difficult year for Sugar, the actions taken to close our Vivergo bioethanol plant and restructure our Spanish business will support improved profitability.

“Looking ahead, we are confident in the group outlook for 2026, although much depends on the consumer environment, which is particularly unpredictable at the moment. Our strong balance sheet underpins disciplined investment as we continue building brands and businesses that will deliver growth over the long term.

“I fully support the board’s review of the group structure and will be closely involved in the process and any outcome. Within ABF we have two great businesses but one strong culture of long-term value creation driven by the dedication and excellence of our people. Our unique and exceptional food business has historically been less well understood by the financial markets than Primark, yet it has a highly attractive portfolio, deep global expertise and much potential. Primark has an incredibly strong international brand, a powerful customer proposition, and substantial growth opportunities.”