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Primark owner ABF warns profits will fall again next year after a 14% slump amid weak consumer confidence

A Primark store entrance, as the retailer's owner Associated British Foods warned shareholders that profits will fall again in 2027, with like-for-like Primark sales down 2.6% across the year.
A Primark store entrance, as the retailer's owner Associated British Foods warned shareholders that profits will fall again in 2027, with like-for-like Primark sales down 2.6% across the year.

Associated British Foods reported adjusted pre-tax profits of £1.46 billion for the year to September 2026, down 14%, with the group now forecasting a further decline in 2027 driven largely by heavy losses in its sugar operation. Chief executive George Weston flagged a "challenging consumer environment" across most markets, with inflation and higher energy costs adding pressure.

Like-for-like Primark sales fell 2.6%, with a 4.7% dip in Continental Europe — the retailer's biggest market — dragging down the overall figure.

ABF confirmed the Primark demerger remains on track, with a stock market listing expected to complete by December 2027.

UK like-for-like Primark sales edged up 0.5% after price cuts improved value perceptions, though growth slipped in the second half of the year.

MoreThe TimesPrimark-owner ABF profit hit ahead of splitLBCPrimark owner cautious over inflation and consumer confidenceCity A.M.Primark sales slip ahead of ABF exit in ‘challenging’ backdropIrish TimesPrimark-owner AB Foods forecasts further profit declineRetail GazettePrimark owner warns of further profit decline after 14% slump - Retail GazetteGlobal Banking & Finance ReviewAB Foods Profit Decline Forecast as Primark & Sugar Losses Deepen - Global Banking & Finance ReviewLondon South EastPrimark-owner forecasts further profit decline as sugar losses deepen
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