International food processing and ingredients company Associated British Foods pls (ABF) financial results for the 52 weeks ending 12th September 2026 show Group revenue declined by 1% on the year on a constant currency basis to £19,582 million and adjusted operating profit fell 14% to £1,508 million, which the company said was primarily a reflection of lower profit in Primark.
Profits hit in ABF food sectors
In the Grocery category, sales grew by 2% on a constant currency basis from £4,125 million in 2025 to £4,237 million, which the company said was primarily due to the consolidation of Hovis into the business. Adjusted operating profit was down by 11% from £478 million in the previous year to £427 million in 2026. ABF said growth across a number of brands was offset by lower sales of US oils due to “US consumer pressures” driving a decline in the US oils businesses, including a lower profit contribution from its joint venture, Stratas.
Sales in ABF’s Ingredients category increased by 2%, to £2,105 million, while adjusted operating profit decreased by 8%, to £238 million, and adjusted operating margin went from 12.6% in 2025 to 11.3% in the year to 12th September. ABF said this, primarily, reflected weakness in demand for bakery ingredients in the US market as well as “continued investment in innovation and commercial capabilities” with the aim of driving long-term growth in speciality ingredients.
Revenue in the Sugar category dropped from £2,047 million in 2025 to £1,966 million in 2026, a drop of 9% on a constant currency basis, and the segment had an adjusted operating loss of £47 million, from £1 million in 2025. ABF said sales and profit declined significantly in the UK, primarily due to lower average selling prices compared to 2025, which was only partially offset by lower negotiated beet prices.
For 2027, the Group expects to deliver adjusted operating profit and adjusted EPS below 2026, which it said is primarily due to Sugar. The expected adjusted operating loss in Sugar is in the range of £70 million to £170 million for 2027. It stated: “We remain cautious on consumer sentiment and also the impact of inflation and higher energy costs on our businesses.
“Our results this year reflect a challenging operating environment and macroeconomic headwinds.”
Chief executive of Associated British Foods, George Weston, commented: “Our results this year reflect a challenging operating environment and macroeconomic headwinds. We have focused on what we can control, taking targeted actions to drive performance while making good operational and strategic progress and continuing to invest in long-term growth.
“In AB Foods, profit was impacted by US consumer weakness in certain categories and lower European sugar prices. However, this masked encouraging growth across a number of brands and businesses, supported by continued investment in product innovation, marketing and targeted acquisitions. Multi-year capital projects completed in Grocery and Ingredients this year provide new capacity and capabilities to drive growth.
“The integration of Hovis is well underway and we expect to drive significant cost synergies to invest in marketing and innovation and create a sustainably profitable UK bakeries business. While the outlook for Sugar remains challenging in 2027, future years should benefit from the recent uplift in world sugar prices and our restructuring actions to meet demand more efficiently.
“Looking ahead, while we remain cautious about consumer sentiment and commodity costs, we will continue our sharp focus on driving financial performance and delivering the growth opportunities from capital investments across the Group. We are on track to complete the demerger of Primark from AB Foods in December 2027, positioning both businesses to deliver on their medium and long-term growth prospects.”
