Associated British Foods Forecasts Profit Decline Through 2027

Associated British Foods forecast a further decline in profits for 2027, following a 14 percent drop during the 2025/26 fiscal year. For the year ending September 12, 2026, the FTSE 100 group reported an adjusted operating profit of £1.508 billion on revenue of £19.58 billion, representing a 1 percent decrease on a constant currency basis.

The company attributed the earnings pressure to deeper losses within its sugar division and lower underlying sales at its Primark fashion chain. Management cited inflation, rising energy costs, and cautious consumer sentiment as primary drivers of the downturn. Regarding future performance, the group stated that in 2027, it is expected to deliver adjusted operating profit and adjusted EPS below 2026, mainly due to Sugar.

To restructure its operations, Associated British Foods is proceeding with a plan to demerge Primark from its food, grocery, and agriculture businesses. This separation process is expected to be completed in December 2027.