Primark Owner Warns of Another Profit Fall as Sugar Losses Deepen
Direct answer: Associated British Foods, the company behind Primark, said its profit fell in the year to September 12, 2026, and warned that profit is likely to fall again in the new financial year, mainly because its sugar business is losing money.
What happened
Reuters reported on November 3, 2026 that Associated British Foods made an adjusted operating profit of 1.508 billion pounds for 2025/26, down 14 percent on a constant currency basis from 1.734 billion pounds a year earlier. Group revenue was 19.58 billion pounds, down 1 percent on a constant currency basis.
Primark, the fashion chain, saw adjusted operating profit fall 12 percent on a constant currency basis to about 1.0 billion pounds, and its like-for-like sales fell 2.6 percent, with a small rise in the UK and Ireland offset by a 4.7 percent fall in mainland Europe. The company’s own results announcement confirms the same figures: group revenue of 19,582 million pounds, adjusted operating profit of 1,508 million pounds, and adjusted earnings per share of 156.0p, down from 174.9p.
The sugar business swung to a loss of 47 million pounds, from a profit of 1 million pounds a year earlier, as selling prices fell. Grocery profit fell to 427 million pounds from 478 million pounds. The company held its total dividend at 63.0p per share.
Why it matters for beginners
A profit warning is a simple signal: a company is telling investors that its next results are likely to be weaker than expected. Here, the warning is not about one bad week. It is about a whole business unit, sugar, that is expected to lose between 70 million and 170 million pounds in the new year, because of weak selling prices, higher gas costs, and weather effects on production in Africa.
Primark is also being separated from the food businesses. The company said work on the Primark demerger is progressing well and is expected to be completed in December 2027. For a beginner, a demerger means one company splits into two separate listed companies, so shareholders end up owning shares in both parts instead of one combined group.
What to watch next
Watch whether sugar losses land near the low or high end of the 70 million to 170 million pound range, and whether Primark’s margin holds near the guided level of about 10 percent. Also watch for updates on the December 2027 demerger timetable, and for any change in the dividend at the next results update.
FAQ
What is Associated British Foods?
It is a UK food and retail group that owns Primark, as well as grocery brands such as Twinings and Ovaltine, and a large sugar business.
Why did profit fall?
Adjusted operating profit fell 14 percent on a constant currency basis, mainly because sugar moved into a loss and Primark’s like-for-like sales fell, especially in mainland Europe.
What does the company expect next?
The company expects adjusted operating profit and adjusted earnings per share to come in below 2026 in the new financial year, mainly because of sugar.
