Associated British Foods (ABF) is considering separating its Primark retail arm from its food operations following a structural review aimed at maximising long-term value. The group, which owns brands such as Twinings, Blue Dragon, and Jordans, confirmed the review is being conducted in consultation with its majority shareholder, Wittington Investments.
The move comes as the company reports mixed full-year results. For the year ending 13 September, revenue declined by 3% to £19.46bn, with growth in retail offset by weaker performance in its sugar division. Primark sales rose 1% to £9.5bn, while total operating profit fell 23% to £1.5bn, reflecting lower sugar earnings. Adjusted operating profit dropped 13% to £1.7bn.
In August, ABF acquired Hovis from private equity firm Endless, strengthening its bakery portfolio under the Allied Bakeries umbrella. The company said its global grocery brands continued to perform well, despite softness in its US oils and UK bakery segments.
The review follows growing calls from investors for clearer valuation of ABF’s food businesses, which include grocery, ingredients, agriculture, and sugar. With Primark now a major global retail brand, the board is assessing whether separating the divisions would create a more efficient structure and unlock shareholder value.
Looking ahead, ABF expects continued growth from its international grocery brands in 2025–2026, supported by marketing investment and innovation, though results may be tempered by weaker US oils performance. The group maintains confidence in its long-term outlook, citing a strong balance sheet and disciplined investment strategy.