Primark-owner forecasts further profit decline as sugar losses deepen

LONDON, Nov 3 (Reuters) - Associated British Foods ABF.L on Tuesday forecast another profit decline this year after reporting a 14% fall in 2025/26, as deeper sugar losses and lower underlying sales at its Primark fashion chain weighed on earnings.

The FTSE 100 group, which confirmed in April it would demerge Primark from its food businesses next year, made adjusted operating profit of £1.508 billion ($2.02 billion) for its year to September 12 2026, on group revenue down 1% on a constant currency basis to £19.58 billion.

"In 2027, the Group is expected to deliver adjusted operating profit and adjusted EPS below 2026, mainly due to Sugar, as previously guided," the group, which also owns grocery, ingredients and agriculture businesses said.

It said it remained cautious on consumer sentiment and also the impact of inflation and higher energy costs on its businesses.

AB Foods said work on the demerger is progressing well and is expected to be completed in December 2027.