The Newshound

Primark owner 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, owner of Primark, reported adjusted pre-tax profits falling 14% to £1.46 billion for the year to September, dragged down by heavy losses in its sugar division and a 2.6% decline in Primark like-for-like sales. ABF chief executive George Weston cited a "challenging consumer environment across most markets" and said the group is entering the new financial year cautiously, mindful of inflation and energy costs.

Continental Europe, Primark's largest market at 47% of total sales, saw sales drop 4.7%.

ABF still plans to float Primark on the stock market by December 2027, which would leave behind a standalone food-focused business.

Franchise outlets in the Middle East — among them those in Dubai and Bahrain — are outpacing expectations.

MoreLBCPrimark 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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