The owner of Primark on Tuesday said it could spin off its budget fashion chain to better serve its main food business.
Associated British Foods made the announcement as it announced falls to group annual profits and revenue.
ABF said in a statement that a review already underway "may lead to the board deciding to undertake a separation of the Primark and Food businesses", which is a major producer of sugar.
"This review is being conducted in consultation with ABF's largest shareholder, Wittington Investments, which remains committed to maintaining majority ownership of both businesses," the statement added.
ABF, whose grocery brands include Twinings, Patak’s and Kingsmill, said that its net profit slid nearly 30 per cent to £1 billion in the 12 months to mid-September and compared with its 2023/24 earnings.
Revenue dipped to £19.5 billion.
"Looking ahead, we are confident in the group outlook for 2026 although much depends on the consumer environment, which is particularly unpredictable at the moment," said ABF chief executive George Weston.
Shares in ABF slid 3.3 percent following the updates.
"The results showed Primark making progress, but the overall numbers were held back by a widely-expected weakness in the Foods segment, especially in sugar," noted Steve Clayton, head of equity funds at Hargreaves Lansdown.
(AFP)