REG - Assoc.British Foods - Final Results
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RNS Number : 0136G Associated British Foods PLC 04 November 2025
FOR RELEASE 4 November 2025
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Annual Results Announcement
Year ended 13 September 2025
Associated British Foods plc results for the 52 weeks ended 13 September 2025
Financial headlines
2025 2024 Actual Constant currency
currency
Group revenue £19,459m £20,073m (3)% (1)%
Adjusted operating profit £1,734m £1,998m (13)% (12)%
Adjusted profit before tax £1,696m £1,957m (13)%
Adjusted earnings per share 174.9p 196.9p (11)%
Operating profit £1,483m £1,932m (23)%
Profit before tax £1,413m £1,917m (26)%
Basic earnings per share 141.6p 193.7p (27)%
Gross investment £1,244m £1,281m (3)%
Free cash flow £648m £1,355m
Net cash before lease liabilities £390m £1,044m
Total net debt £(2,629)m £(2,021)m
Return on Average Capital Employed ('ROACE') 15.5% 18.1%
Total dividends per share 63.0p 90.0p
Operating profit is stated after exceptional charges and other items as shown
on the face of the consolidated income statement. In 2025, total exceptional
items were £188m, which primarily related to non-cash impairment charges of
£154m and £34m related to restructuring activity that has or will result in
cash costs (2024: £35m related to non-cash impairment charges). The Group has
defined and outlined the purpose of its Alternative performance measures
('APMs') in note 14. These measures are used within the Financial headlines
and in this Annual Results Announcement.
References to changes in revenue and adjusted operating profit in the
following commentary are based on constant currency unless stated otherwise.
Group performance
• Revenue decreased 1%, with growth in Retail offset by a decline in Sugar
• Adjusted operating profit declined 12% due to the reduction in operating
profit in Sugar
• Adjusted EPS decreased 11% to 174.9p, benefitting from the accretive impact of
share buybacks
• Continued investment of £1.2bn in capacity, capabilities and new technology
to support growth
• Good progress delivering our focused sustainability priorities, particularly
decarbonisation
• Free cash flow of £648m reflects lower operating profit and higher working
capital following a non-recurring benefit in 2024
• Group return on average capital employed was 15.5%
Segmental performance
• Retail:
• Sales grew 1% to £9.5bn
• Good execution of store rollouts in Europe and the US contributed 4% to sales
growth
• UK like-for-like sales improved in the second half as we renewed our focus on
Primark's value proposition and product offer
• In Europe, a strong first half was followed by weaker trading in the second
half
• Adjusted operating profit increased 2% to £1.1bn and adjusted operating
profit margin was 11.9%
• Significant step up in investment in digital, brand and product initiatives to
drive long-term growth
• In Grocery, international brands delivered good sales growth, offset by US
oils and Allied Bakeries, as expected
• Ingredients delivered strong growth in adjusted operating profit
• Sugar adjusted operating profit was breakeven excluding Vivergo, as expected
• Agriculture adjusted operating profit declined due to one-off costs and a
lower profit contribution from its joint venture
Shareholder returns
• Strong balance sheet with a leverage ratio of 1.0x at 13 September 2025
• Total dividend of 63.0p per share, in line with 2024, comprising interim
dividend of 20.7p per share and proposed final dividend of 42.3p per share
• Completed £594m of share buybacks in 2025
• Announcing further share buyback programme of £250m, expected to be completed
before the end of financial year 2026
• Board review of Group structure announced, which may lead to a separation of
the Primark and Food businesses
Outlook
In 2026, we expect the Group to deliver growth in adjusted operating profit
and adjusted EPS, and we are confident in the Group's medium and long-term
growth prospects.
In Primark, we continue to expect the consumer environment to remain subdued.
We are focused on strengthening our customer value proposition through our
product offer, price and price perception, and digital customer engagement
with a view to driving like-for-like sales. We have made good progress in the
UK and Ireland, and we have plans to roll out similar initiatives in all of
our other markets. Our store rollout programme continues in Europe, the US and
through our franchise model and is expected to contribute around 4% to sales
growth in 2026. We continue to target white space growth to contribute around
4% to 5% per annum to our growth in total sales for the foreseeable future.
Adjusted operating profit margin is expected to be slightly below last year's
underlying adjusted operating profit margin as we focus on investing in
growth. It should be noted that in 2025 we had a non-recurring benefit of
around £20m.
In Grocery, we expect our international brands to deliver good growth in sales
and profit, underpinned by investment in marketing and product innovation,
albeit offset by lower volumes and profit in our US oils business. As such, we
expect profit to be around the same level as 2025. In Ingredients, we expect
to deliver sales growth in our yeast and bakery ingredients business and in
our specialty ingredients portfolio. As a result of increased investment, we
expect to hold adjusted operating profit in Ingredients at broadly this year's
level. In Agriculture, we expect adjusted operating profit to remain in line
with 2025.
We still expect to improve profitability in Sugar and to deliver a small
adjusted operating profit in 2026. Our cost base will benefit from both the
lower beet price that we negotiated in the UK and the restructuring actions
that we have taken to date in Spain to reduce our beet manufacturing
footprint. We continue to expect our average selling price in 2026 to be below
2025's as European sugar prices remain low. We anticipate good progress in
Africa in 2026, in particular with the commissioning of our new sugar mill in
Tanzania.
Review of the Group Structure
The Board of ABF has been conducting a review of the Group structure with a
view to maximising long-term value. Although no decision has been taken, the
outcome of this review may lead to the Board deciding to undertake a
separation of the Primark and Food businesses. This review is being conducted
in consultation with ABF's largest shareholder, Wittington Investments, which
remains committed to maintaining majority ownership of both businesses.
Rothschild & Co has been assisting the Board with the review.
The Board will provide an update on the review as soon as practicable.
George Weston, Chief Executive of Associated British Foods, said:
"This was a year of intense strategic and operational activity within ABF.
Most of our businesses delivered robust financial results, while navigating a
challenging external backdrop.
Primark's improved UK trading in the second half was encouraging and reflects
renewed focus on our value proposition, a stronger product offer and enhanced
digital capabilities. We have more to do in some of Primark's European markets
and there are plans in place. Significant white space remains as Primark
continues its store expansion in existing and new markets and through
franchise opportunities. Overall trading in our Grocery and Ingredients
businesses was as expected. In a difficult year for Sugar, the actions taken
to close our Vivergo bioethanol plant and restructure our Spanish business
will support improved profitability.
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. Our strong balance sheet underpins disciplined investment as we
continue building brands and businesses that will deliver growth over the long
term.
I fully support the Board's review of the Group structure and will be closely
involved in the process and any outcome. Within ABF we have two great
businesses but one strong culture of long-term value creation driven by the
dedication and excellence of our people. Our unique and exceptional Food
business has historically been less well understood by the financial markets
than Primark, yet it has a highly attractive portfolio, deep global expertise
and much potential. Primark has an incredibly strong international brand, a
powerful customer proposition, and substantial growth opportunities.
I am very excited by what we can deliver in the future for both Food and
Primark."
Michael McLintock, Chairman of Associated British Foods, said:
"As a Board, we have regularly looked at the structure of the Group to assess
how best to develop our strong Food and Primark businesses. ABF has delivered
good long-term returns for shareholders in its current structure and been a
supportive home for both Primark and our Food businesses. Given the scale that
Primark has now attained and the need for better understanding of our Food
businesses, the Board has been undertaking an in-depth review of the future
shape of ABF to assess whether a separation of the Primark and Food businesses
would be a better structure in the years ahead. This review is in consultation
with Wittington as ABF's largest shareholder, and we look forward to
discussing the review with all of our stakeholders. I am leading the review
and will update the market further when we are able to provide more detail."
Inside Information
This announcement is deemed by Associated British Foods plc to contain inside
information as stipulated under the Market Abuse Regulation (EU) No. 596/2014
(as it forms part of domestic law by virtue of the European Union (Withdrawal)
Act 2018). On the publication of this announcement via a Regulatory
Information Service, such inside information is now considered to be in the
public domain.
The person responsible for arranging the release of this announcement on
behalf of Associated British Foods plc is Paul Lister, Director of Legal
Services and Company Secretary.
For further information please contact:
Associated British Foods:
Tel: +44 20 7399 6545
Joana Edwards, Interim Finance Director
Lucinda Baker, Head of Investor Relations
Chris Barrie, Corporate Affairs Director
Corporate brokers:
Barclays Bank PLC Nicola Tennent, Richard Bassingthwaighte
+44 20 7623 2323
UBS AG Craig Calvert, Christopher Binks
+44 20 7567 8000
Citigate Dewe Rogerson:
Tel: +44 20 7638 9571
Claire de Groot Tel: +44 7767 254469
Jos Bieneman Tel: +44 7834 336650
There will be an analyst and investor presentation at 09.00am GMT today which
will be streamed online and can be accessed via our website here
(https://www.abf.co.uk/investorrelations/results_and_presentations) .
Notes to editors
Associated British Foods is a diversified international food, ingredients and
retail group with revenue of £19.5bn and 138,000 employees in 56 countries.
It has significant businesses in Europe, the Americas, Australia, Africa and
Asia.
Our purpose is to provide safe, nutritious and affordable food, and clothing
that is great value for money. We take a long-term, patient approach to drive
sustainable growth and cash generation across our portfolio of food and retail
businesses to create value for all stakeholders. This aligns with our approach
to sustainability and sustainable supply chains, where we focus on what
matters and where we can make a difference.
Operating review
Retail
2025 2024 Actual Constant currency
currency
Revenue £m 9,489 9,448 in line +1%
Adjusted operating profit £m 1,126 1,108 +2% +2%
Adjusted operating profit margin 11.9% 11.7%
Operating profit £m 1,120 1,100 +2%
Return on average capital employed 19.1% 18.7%
Financial summary
Primark's sales grew 1% in the year. Our store rollout programme contributed
4% to growth, with good execution across our key growth markets in Europe and
the US. Like-for-like sales declined 2.3% in the year, declining 2.5% in H1
and 2.0% in H2.
Market Percentage of total sales Like-for-like sales growth Total sales growth
H1 2025 H2 2025 2025 H1 2025 H2 2025 2025
UK and Ireland 45% (6.0)% (0.4)% (3.1)% (4)% +1% (1)%
Europe (excluding UK and Ireland) 49% +1.1% (3.7)% (1.5)% +5% (1)% +2%
US 6% +17% +23% +20%
Primark Group (2.5)% (2.0)% (2.3)% +1% +1% +1%
In the UK and Ireland, sales declined 1% and like-for-like sales declined
3.1%, while Primark increased its UK market share to 6.8%(1). In H1, lower
sales reflected a decline in the UK clothing retail market and particularly
weak shopping activity within elements of Primark's customer base. There was a
good sequential improvement in H2 trading in response to our stronger product
offer, particularly in womenswear, and increased digital engagement, supported
by more favourable market conditions.
In Europe (excluding the UK and Ireland), sales grew 2%, with new store
openings delivering a good contribution to sales. Like-for-like sales declined
1.5%, of which we estimate around a quarter was due to the impact of new store
openings(2). In H1, we had a good performance across our markets, followed by
weaker trading in H2. In the US, sales grew 20% this year driven by new store
openings.
Adjusted operating profit grew 2% to £1,126m and adjusted operating profit
margin was 11.9%, demonstrating the strength of Primark's operating model and
focused cost optimisation. Gross margin improved due to favourable foreign
exchange, supplier efficiencies and effective markdown management. A
non-recurring benefit of around £20m and cost savings broadly offset wage
inflation and a significant step up in investment in product, marketing and
digital initiatives. We expect this investment to continue over the medium
term as we focus on like-for-like growth.
In 2025, return on average capital employed was 19.1% compared to 18.7% in
2024.
Market summary
Market 2025 percentage of Primark sales H1 2025 H2 2025 2025
sales growth sales growth sales growth
UK and Ireland 45% (4)% +1% (1)%
Spain and Portugal 17% +8% +2% +5%
France and Italy 16% +4% (4)% in line
Northern Europe 13% +1% (2)% (1)%
Central and Eastern Europe 3% +21% +9% +14%
US 6% +17% +23% +20%
Primark Group +1% +1% +1%
In the UK and Ireland, sales decreased 1% in the year and like-for-like sales
declined 3.1% while Primark increased its UK market share to 6.8%(1). In H1,
Primark's sales were impacted by a decline in the UK clothing retail market
due to cautious consumer sentiment and the lack of a seasonal purchasing
catalyst during mild autumn weather. Shopping activity within elements of
Primark's customer base was particularly weak. In H2, Primark's trading showed
a good sequential improvement. While the UK market continued to decline, it
was at a slower rate. Primark's improved performance reflected our strong
product offer, particularly in womenswear, and good execution. We also
benefitted from increased investment and focus on digital customer engagement,
including good momentum in our Click & Collect service, which is now
available from all 187 of our British stores. Active management of our UK
store estate also drove a sales uplift from store openings, relocations and
extensions. Excluding the benefit from changes to the store estate,
like-for-like sales in the UK and Ireland declined 3.1%, down 6.0% in H1 and
broadly flat in H2.
1. Kantar, Primark market share of the total UK clothing, footwear and
accessories market including online by value, 52-week data to 14 September
2025.
2. This is due to the effects of both cannibalising sales in existing stores, and
from new stores lapping the sales spike that occurs in the first few months of
opening.
In Europe (excluding the UK and Ireland), sales grew 2%, reflecting a good
contribution from new store openings across our growth markets partially
offset by lower like-for-like sales in H2. In Spain and Portugal, Primark had
strong underlying sales growth in H1 and while growth slowed in H2, Primark
continued to outperform a weak Spanish clothing market. In France and Italy,
sales were flat in the year, reflecting both challenging market conditions and
competitor intensity. Growth in our newer markets in Central and Eastern
Europe was driven by new store openings. In our Northern European(3) markets,
sales declined slightly, mainly due to lower sales in Germany in H2. The
recent restructuring of our store footprint in Germany and the Netherlands
drove much-improved sales densities and profitability.
In the US, sales grew 20%. We made good progress with our space expansion
programme, opening six new stores in the year, including our first openings in
Texas and Tennessee. We now have 33 stores in total with an additional 18
leases signed. Recently opened stores positively contributed to our overall
sales density in the US. We continue to focus on driving brand awareness,
focusing on our value proposition for customers and two marketing campaigns
that we trialled in the year delivered encouraging results.
Strategic and operational summary
We strengthened our product offer in 2025, particularly in womenswear. While
overall like-for-like sales in the year were weak, in the second half we
delivered like-for-like sales growth in womenswear, which was particularly
strong in the UK and Ireland. We have also worked to improve the perception
and resonance of our customer value proposition. This included our 'Never
Basic' campaign earlier in the year, which reinforced the communication of our
unbeatable value to customers, and our latest value initiative, 'Major Finds',
in the UK and Ireland. There is more to do in this space and we have plans for
similar initiatives in all of our other markets.
We continued to increase our use of marketing to drive traffic to our website
and footfall in our stores. Traffic to our website grew 24% in the year, with
particularly strong growth in the UK and the US. We also invested in marketing
campaigns during the year for specific purposes, including to build brand
affinity in Germany and brand awareness in the US. We made good progress with
paid media, which delivered strong returns, and organically through both
social media and our use of CRM. Again, this has been more focused on the UK
to date, and we have the opportunity to roll this out further in other
markets. In the UK we also ran our first truly integrated campaign across
multiple channels and in our stores, which focused on reinvigorating our denim
offer. We expect to integrate and optimise our use of brand and marketing
campaigns to drive like-for-likes sales growth.
Our increasingly integrated approach to customer engagement across different
channels and in store was underpinned by continued investment in our digital
capabilities and assets. This included investment to continuously improve the
user experience and functionality of our website, with the use of our stock
checker continuing to grow. We increased our CRM database to reach four
million customers and we launched our Primark app, starting in Ireland and
Italy. The final evolution of the customer digital journey is our Click &
Collect service, and in May 2025 we completed the rollout to all of our
British stores.
In 2025, we invested £497m in capital projects, including new store openings
in Europe and the US. We opened a total of 23 new stores in the year: six in
the US, three in Spain, three in Portugal, three in France, three in the UK,
two in Italy, one in Poland, one in Czechia and one in Romania. We relocated
three stores, extended two stores, closed one store and right-sized four
stores, which increased our retail selling space by 0.8m sq ft on both a gross
and net basis. On 13 September 2025, we were trading from 473 stores across 17
markets, with 19.5m sq ft of selling space.
We also made good progress with our store refurbishment programme, completing
refits in 34 stores comprising 1.3m sq ft of selling space. This included the
ongoing rollout of self-checkouts that are now in 195 of our stores. We
continued to invest in our depot network, including automation projects, and
we increased investment in technologies to improve the operational performance
of our stores and depots and build the capability to deliver long-term growth.
We have significant white space in our growth markets in Europe and the US and
in new franchise markets, and we are targeting new store rollouts to
contribute around 4% to 5% per annum to Primark's total sales growth for the
foreseeable future. This year we signed our first franchise agreement with the
Alshaya Group to enter the Gulf markets and made good progress towards the
first store openings. We opened a store in Kuwait in October 2025 and we
expect to open three stores in Dubai in early calendar year 2026.
ESG summary
Primark continued to make progress with its sustainability priorities. Primark
is committed to respecting human rights throughout its supply chains. In the
2024 calendar year, Primark conducted over 2,400 social audits in its supplier
factories, most of which were unannounced, to monitor compliance with its
Supplier Code of Conduct. Primark's Scope 3 GHG emissions, which represent the
biggest portion of its footprint, reduced by 3% compared to 2024 and by 4%
against the 2019 baseline. Primark's Scope 1 and 2 (market-based) emissions
decreased by 39% compared to 2024 and by 71% against the 2019 baseline.
Primark is taking an increasingly circular approach to fashion, one that keeps
products and materials in use for longer and aims to reduce waste over time.
This includes embedding circular design principles into how products are
created and expanding access to reuse and repair options for customers. These
efforts are now translating to progress. As of July 2025, 20% of all jersey
and 8% of all denim is now circular by design as defined by our standard.
Primark has committed that 100% of its clothes will be made from recycled or
more sustainable materials by 2030. In 2025, 74% of its clothing units sold
contained recycled or more sustainably sourced materials, an increase from 66%
in 2024. In 2025, 57% of its cotton clothing units sold contained cotton that
was organic, recycled or from the Primark Cotton Project.
Primark is reviewing its sustainability commitments to ensure it continues to
focus on the most material issues where it can make a difference. Primark
expects to complete this review during 2026.
3. Northern Europe comprises Germany, the Netherlands, Belgium and Austria.
Grocery
2025 2024 Actual Constant currency
currency
Revenue £m 4,125 4,242 (3)% in line
Adjusted operating profit £m 478 511 (6)% (4)%
Adjusted operating profit margin 11.6% 12.1%
Operating profit £m 424 493 (14)%
Return on average capital employed 31.5% 35.8%
Financial summary
Grocery sales were in line with last year, adjusted operating profit declined
4% to £478m and adjusted operating margin was 11.6%. Our two largest
international brands, Twinings and Ovaltine, delivered good growth through
strong commercial execution, effective marketing and good innovation. We also
benefitted from consolidating our recent acquisition of The Artisanal Group in
Australia. As expected, growth was offset by lower sales and profit in US oils
and Allied Bakeries.
We invested £206m in capital projects across Europe, Australia and Africa to
support future growth. Return on average capital employed was 31.5%.
Business summary
Our international brand businesses(4) performed well overall. Twinings
delivered good volume-led sales growth in most markets, including the UK,
France and the US, driven by increased investment in effective marketing,
focused in-store execution and good product innovation. We made continued
progress growing our portfolio of wellness teas, including green, herbal and
fruit teas. Ovaltine delivered good sales growth in 2025. In Europe and
Thailand, price increases, due to significantly higher cocoa costs, had a
negative impact on volumes. Our other markets had good growth, including
Brazil, China, Myanmar and Nigeria. Our new manufacturing facility in Nigeria
will be fully operational in 2026 and will support continued growth in Africa.
We are also adding capacity in Poland to support the international growth of
Blue Dragon.
Our US-focused businesses(5), which include market-leading brands such as
Mazola and Fleischmann's, performed broadly as expected. This included lower
sales and profit of consumer oils, while Mazola maintained its market share as
a result of its strong brand equity, targeted marketing investment and good
in-store execution.
In our UK-focused businesses(5), Allied Bakeries had lower sales and an
increased operating loss in a challenging market, as expected. In August, we
agreed to acquire Hovis Group Limited, subject to regulatory approval. By
combining the production and distribution activities of the two businesses, we
expect to drive significant cost synergies and enable innovation to create a
sustainably profitable bakeries business. In our other UK businesses,
performance was mixed, including growth in Westmill, a supplier of global
foods to the foodservice sector, and a decline in Silver Spoon. During 2025,
we added the manufacturing capability in the UK to produce Scrocchiarella
bakery products and accelerate growth in the foodservice channel. We closed
one of our manufacturing facilities for Ryvita to drive cost and efficiency
savings through a consolidated footprint, resulting in a non-cash impairment
charge of £25m and cash closures costs of £2m.
In our Australia and New Zealand-focused businesses(5), our sales and profit
improved in a consumer environment that remains subdued, and we had an uplift
from the consolidation of The Artisanal Group. Our largest brand, Tip Top,
benefitted from the new buns and rolls capacity commissioned in the year to
support our growth strategy in the foodservice channel. We also made good
progress with the expansion of our bakery in Western Australia, where Tip Top
is the leading supplier.
Ingredients
2025 2024 Actual Constant currency
currency
Revenue £m 2,041 2,134 (4)% in line
Adjusted operating profit £m 257 233 +10% +16%
Adjusted operating profit margin 12.6% 10.9%
Operating profit £m 243 219 +11%
Return on average capital employed 17.9% 16.9%
Ingredients sales were broadly flat in both our yeast and bakery ingredients
business and in our portfolio of specialty ingredients businesses. Adjusted
operating profit increased by 16% and adjusted operating margin was 12.6%,
supported by a continued focus on productivity savings across supply chains
and good management of input costs.
Sales in our yeast and bakery ingredients business, AB Mauri, reflected a good
underlying performance. We continued to leverage our strong route to market,
broad product portfolio and good innovation in bakery ingredients. We also
benefitted from the consolidation of prior year acquisitions in specialty
yeast and baking ingredients. Overall sales growth was offset by the effects
of hyperinflation accounting treatment in Argentina. We continued to make
progress with capital projects to drive long-term growth, including the
construction of our fresh yeast plant in northern India.
4. Our international brand businesses, which include Twinings, Ovaltine, Blue
Dragon, Patak's, Jordans and Mazzetti, accounted for approximately a third
of total Grocery sales.
5. Within our regionally-focused brand businesses, US-focused businesses
accounted for approximately 15% of total Grocery sales, UK-focused businesses
accounted for approximately a quarter of total Grocery sales, and Australia
and New Zealand-focused businesses accounted for approximately a quarter
of total Grocery sales.
In our specialty ingredients businesses, ABFI, most of the portfolio performed
well. Our enzymes and health and nutrition businesses had particularly strong
sales growth, while this was offset by lower sales in one of our
pharmaceutical businesses due to softer demand in certain product categories.
Across our portfolio, we continued to invest in R&D, commercial
capabilities and strategic capital projects to drive long-term growth. This
included new capacity and technologies in our yeast extracts and enzymes
businesses.
Our ingredients business in Australia and New Zealand, Mauri ANZ, performed
well and benefitted from additional capacity in animal feed mixes from the new
mill we commissioned last year. In 2025, we began work to relocate our flour
mill in Victoria. New Food Coatings, our joint venture in Australia, New
Zealand and south east Asia, specialising in seasonings, sauces and
ingredients, continued to grow.
Sugar
2025 2024 Actual Constant currency
currency
Revenue £m 2,054 2,328 (12)% (10)%
Adjusted operating (loss)/profit £m (2) 213 (101)% (101)%
Adjusted operating (loss)/profit margin (0.1)% 9.1%
Operating (loss)/profit £m (205) 181 (213)%
Return on average capital employed (0.1)% 10.9%
Sugar sales declined 10% and the segment had an adjusted operating loss of
£2m, excluding Vivergo(6), due to low European sugar prices.
In the UK and Spain(7), sales and profitability declined significantly in 2025
as a result of persistently low European sugar prices and a high cost of beet
for the 2023/24 campaign. In our Spanish business, Azucarera, where the cost
base has been structurally too high, we have completed restructuring in our
northern beet operations to reduce our footprint from three beet facilities to
one. We will continue to reduce costs and improve efficiency in our
operations.
In Africa(7), the performance of our businesses was mixed between markets.
Malawi and Eswatini had good growth. Zambia and South Africa are recovering
from droughts that resulted in higher production costs and lower profitability
in 2025. In Tanzania, our business continued to be affected by sugar imports
at higher levels than usual. The commissioning of our new sugar mill is
expected to be in the first half of the 2026 financial year, which will
significantly increase our production capacity and therefore the domestic
sugar supply in the Tanzanian market. In 2025, we completed the sale of our
moth-balled sugar operations in Mozambique.
Sugar is the largest contributor to ABF Group's Scope 1 and 2 GHG emissions
and a multi-year decarbonisation programme is in place. In 2025, Sugar's Scope
1 and 2 GHG emissions (market-based) decreased by 9% compared to 2024 and by
23% against its 2018 baseline. These reductions were achieved by continuous
improvements to production efficiency, investing in new technology, innovating
to use less energy and fuel-switching to lower-emission sources. In 2025, 60%
of total energy consumption came from renewable sources, primarily bagasse,
the fibrous by-product of sugar cane crushing.
In 2025, we made the decision to close our Vivergo bioethanol plant. This
followed the UK Government's decision not to provide the regulatory and
financial solution required for Vivergo to operate on a consistently
profitable basis. During 2025, we recognised impairment charges and
restructuring costs of £161m in relation to Vivergo and Azucarera, of which
£32m are cash costs, £13m of which have been incurred in 2025, with the
remainder to be paid in 2026 and beyond. In addition, our decision to close
Vivergo resulted in closure costs of £30m of which £24m will be cash costs
incurred in 2026 and beyond.
Agriculture
2025 2024 Actual Constant currency
currency
Revenue £m 1,616 1,650 (2)% (1)%
Adjusted operating profit £m 25 41 (39)% (38)%
Adjusted operating profit margin 1.6% 2.5%
Operating profit £m 11 31 (65)%
Return on average capital employed 4.8% 8.0%
Agriculture sales declined 1% and adjusted operating profit decreased 38% to
£25m. This primarily reflects a reduced contribution from our joint venture,
Frontier, and an impact from one-off costs in the year.
Most of our specialty feed and additives businesses performed well. In
particular, Premier Nutrition in the UK had strong growth and AB Vista, our
international feed additives business, had good volume growth in both enzyme
and non-enzyme additives. Our dairy business, which was formed from a number
of acquisitions in 2023 to provide a unique full-service offer to the dairy
sector, delivered good profit growth. Sales in our compound feed businesses
were lower due to reduced commodity prices and continued soft demand in the UK
and China. We had a lower profit contribution from our joint venture,
Frontier, a provider of grain marketing and crop production services. This was
the result of exceptional weather conditions.
We continued to invest in long-term growth, with the ongoing build of new
premix plants in Vietnam and China.
6. Our Vivergo bioethanol plant had sales of £134m and an adjusted operating
loss of £36m in 2025. As a result of the plant's closure, the financial
results of Vivergo are within 'disposed and closed operations' and not within
the Sugar segment.
7. Our European sugar businesses in the UK and Spain accounted for approximately
50% of total Sugar sales and our African sugar businesses accounted
for approximately 50% of total Sugar sales.
Financial review
Group performance
Group revenue was £19.5bn, 1% lower than last year at constant currency, with
growth in Retail being offset by a decline in Sugar. The Group generated an
adjusted operating profit of £1,734m, a decrease of 13% at actual exchange
rates and 12% at constant currency, reflecting lower profitability in Sugar.
Accordingly, Group adjusted operating profit margin declined from 10.0% last
year to 8.9%. Operating profit for the Group of £1,483m was 23% below prior
year, after charging exceptional items of £188m (2024 - £35m), the majority
of which are non-cash impairment charges in Sugar.
The average rates used to translate adjusted operating profit resulted in an
adverse translation movement compared to the prior year of £50m, primarily
driven by the strengthening of sterling against the US dollar, as well as
against some of the trading currencies in our businesses in Malawi, Zambia and
South America.
Free cash flow of £648m was £707m lower than last year, reflecting lower
operating profit and higher working capital following a non-recurring benefit
in 2024.
Segmental summary
Revenue Adjusted operating profit
At actual rates 2025 2024 Change 2025 2024 Change
£m £m % £m £m %
Retail 9,489 9,448 +0.4 1,126 1,108 +1.6
Grocery 4,125 4,242 (2.8) 478 511 (6.5)
Ingredients 2,041 2,134 (4.4) 257 233 +10.3
Sugar 2,054 2,328 (11.8) (2) 213 (100.9)
Agriculture 1,616 1,650 (2.1) 25 41 (39.0)
Central - (110) (100) (10.0)
19,325 19,802 (2.4) 1,774 2,006 (11.6)
Businesses disposed and closed
Sugar 134 271 (40) (8)
19,459 20,073 (3.1) 1,734 1,998 (13.2)
The analysis by segment is set out in the operating reviews. The segmental
analysis by geography is set out in note 1 in the notes to the financial
statements.
Adjusted earnings per share
2025 2024 Change
£m £m %
Adjusted operating profit 1,734 1,998 (13.2)
Finance income 47 71
Finance expense (30) (33)
Lease interest expense (102) (102)
Other financial income 47 23
Adjusted profit before taxation 1,696 1,957 (13.3)
Taxation on adjusted profit (410) (453)
Adjusted profit after tax 1,286 1,504 (14.5)
Adjusted earnings attributable to equity shareholders 1,266 1,479 (14.4)
Adjusted earnings per share (in pence) 174.9p 196.9p (11.2)
Interest and other financial income
Finance income decreased in the year, reflecting both lower year-on-year
interest rates and reduced cash balances. Finance and lease interest expense
remained broadly in line with prior year. Other financial income was higher
reflecting the reduced impact of foreign exchange losses in African markets
compared to prior year. Total net interest expense was £85m, £21m higher
than the prior year.
Given the decline in adjusted operating profit outlined previously, adjusted
profit before tax decreased by 13.3% to £1,696m.
Taxation
The tax charge on adjusted profit before tax was £410m, with an increase in
the adjusted effective tax rate to 24.2% from 23.1% last year. The adjusted
effective tax rate includes the impact of the introduction of Pillar Two as
expected and changes to the mix in profits by jurisdiction.
We expect the Group's effective tax rate in 2026 to be broadly in line with
2025.
Adjusted earnings per share decreased 11.2% to 174.9p per share, reflecting
the decrease in adjusted profit partially offset by a benefit from the
reduction in the weighted average number of shares, from 751 million for 2024
to 724 million for 2025, as a result of share buybacks.
Basic earnings per share
2025 2024 Change
£m £m %
Adjusted profit before taxation 1,696 1,957 (13.3)
Acquired inventory fair value adjustments (1) (2)
Amortisation of non-operating intangibles (40) (40)
Exceptional items (188) (35)
Losses less profits on sale and closure of businesses (32) 26
Losses less profits on disposal of non-current assets (9) 16
Transaction costs (13) (5)
Profit before tax 1,413 1,917 (26.3)
Taxation (368) (437)
Profit after tax 1,045 1,480 (29.4)
Earnings attributable to equity shareholders 1,025 1,455 (29.6)
Basic earnings per share (in pence) 141.6p 193.7p (26.9)
Exceptional items
2025 2024
£m £m
Sugar - impairments 125 24
Sugar - restructuring 36 -
Grocery - restructuring 27 -
Retail - impairment - 11
188 35
In 2025, there were exceptional charges of £188m, of which £154m related to
non-cash impairment charges and £34m related to restructuring activity that
has or will result in cash costs.
In Sugar, poorer trading performance in our Spanish sugar business, Azucarera,
resulted in impairment charges of £119m with all property, plant and
equipment of the business, with the exception of land of £21m, now fully
impaired. In May, Azucarera announced the permanent closure of the La Baneza
factory and the reconfiguration of the Miranda site resulting in exceptional
impairment and restructuring charges of £36m, of which £13m are cash costs
incurred in 2025 and a further £19m are cash costs that will be incurred in
2026 and beyond. Further impairment charges of £6m arose in respect of the
Vivergo business as a result of volatility in ethanol prices in the year.
In Grocery, the Group recognised £27m of exceptional charges related to the
decision to close the Ryvita production facility at Bardney. This comprised a
non-cash impairment charge of £25m, resulting from the decision to close and
sell the site and impair affected equipment, and related cash closure costs of
£2m.
In 2024, non-cash exceptional impairment charges of £35m comprised £24m in
Sugar of which £18m was for Vivergo and £6m was for Mozambique, and £11m in
Retail relating to rent indexation in Primark's German store portfolio.
Losses less profit on sale and closure of businesses of £32m mainly related
to closure costs of £30m for Vivergo, of which £24m will result in cash
costs in 2026 and beyond, a loss on disposal of Maragra Sugar in Mozambique of
£12m and a profit on sale of our interest in AB Mauri Shanghai of £7m. The
prior year profit of £26m mainly included the profit on sale of our China
North Sugar business.
Profit before tax of £1,413m was 26.3% below last year as a result of the
decline in operating profit and increase in exceptional items in 2025.
Total tax charge for the year of £368m benefitted from a credit of £42m
(2024 - £16m) for tax relief on the amortisation of non-operating intangible
assets, acquired inventory fair value adjustments, losses on disposal of
non-current assets, losses on disposal and closure of businesses and
exceptional items.
Earnings attributable to equity shareholders were £1,025m and basic earnings
per share decreased 27% to 141.6p, reflecting the decrease in operating
profit, higher exceptional costs and losses on sale and closure of businesses
partially offset by a benefit from the reduction in the weighted average
number of shares.
Cash flow
2025 2024
£m £m
Adjusted EBITDA 2,685 2,910
Repayment of lease liabilities net of incentives received (328) (308)
Working capital (95) 305
Capital expenditure (1,234) (1,184)
Purchase of subsidiaries (4) (93)
Sale of subsidiaries (4) 24
Net interest paid (94) (69)
Taxation (298) (340)
Share of adjusted profit after tax from joint ventures and associates (106) (120)
Dividends received from joint ventures and associates 108 105
Other 18 125
Free cash inflow 648 1,355
Share buyback (603) (562)
Dividends (656) (502)
Movement in loans and current asset investments 330 (318)
Cash outflow (281) (27)
Free cash flow for the year decreased from last year to £648m as a result of
lower operating profit in Sugar and higher working capital, primarily related
to higher inventory in Primark following softer sales in the second half of
the year.
Capital expenditure has remained at a higher level in 2025 reflecting a number
of large, multi-year capital projects. In our food businesses, we are adding
new capacity and capabilities. In Primark, we continued to execute our store
rollout programme, automate our depot network and invest in new technologies.
We expect this higher level of investment to continue in the medium term.
No acquisitions were made in the year and cash out flows related to deferred
consideration payments for historic acquisitions. In 2024, cash out flows
included acquisition of The Artisanal Group ('TAG') in Grocery, acquisitions
of Mapo, Romix and Omega Yeast in Ingredients and the acquisition of our
remaining holding of the Roal business in which we previously held a 50%
stake.
In Sugar, we disposed of our business in Mozambique to the minority
shareholder and in Ingredients we disposed of our interest in AB Mauri
Shanghai.
Cash tax was lower than last year and included a £25m benefit from the EU
state aid refund. Without this one off benefit next year, we expect cash tax
in 2026 to be moderately higher.
The decrease in other cash flows was driven by lower sales of non-current
assets in the current year and a decrease in provisions predominantly in
Sugar.
Our share buybacks resulted in a cash outflow of £603m in 2025 with our last
share buyback programme of the financial year of £500m completing in August
2025. Dividends paid of £656m reflect the 2024 final and special dividend and
2025 interim dividend. Cash deposits with a greater than 90-day term were not
renewed and resulted in the decrease in current asset investments in the year.
Financing and liquidity
2025 2024
£m £m
Short-term loans (127) (71)
Long-term loans (409) (454)
Lease liabilities (3,019) (3,065)
Total debt (3,555) (3,590)
Cash, cash equivalents and overdrafts 926 1,235
Current asset investments - 334
Total net debt (2,629) (2,021)
Leverage ratio 1.0x 0.7x
Total short and long term loans of £536m at the year end increased by £11m
compared to £525m last year.
Cash (including overdrafts), cash equivalents and current asset investments of
£926m decreased by £643m compared to last year, driven primarily by
additional shareholder returns. Net cash before lease liabilities of £390m
decreased by £654m year on year.
Total liquidity of £2.2bn was £0.6bn lower than last year. Total liquidity
comprises cash, cash equivalents and current asset investments of £1.1bn less
non-qualifying borrowings of £0.3bn and inaccessible cash of £0.1bn, plus
the £1.5bn committed revolving credit facility ('RCF'), which has no
financial performance covenants. The RCF was extended last financial year,
taking the final maturity to June 2029.
Lease liabilities reduced by £46m year-on-year as a result of the capital
repayment element of the leases more than offsetting the impact of new space
and lease renewals.
Total net debt increased by £608m in 2025 to £2,629m at the year end. A
combination of lower adjusted EBITDA and higher total net debt resulted in a
leverage ratio of 1.0x at the year end, compared to 0.7x in 2024.
Pensions
The Group's defined benefit pension schemes' aggregate surplus increased by
11% to £1,590m at year end compared to £1,432m last year. The UK scheme,
which accounts for around 89% of the Group's gross pension assets, was in
surplus by £1,586m (2024 - £1,454m). The most recent triennial actuarial
valuation of the UK scheme was carried out as of 5 April 2023. This last
valuation showed a funding surplus of £1,013m. Details of the assumptions
made in the current and previous year are disclosed in note 13 of the
financial statements together with the bases on which those assumptions have
been made.
The charge for the year for the Group's defined contribution schemes amounted
to £115m (2024 - £103m). This compared with the cash contribution to the
defined benefit schemes of £7m (2024 - £9m).
As agreed with the trustees in previous years and reconfirmed this year, as a
result of the surplus in the UK scheme, the Group will continue to receive a
cash flow benefit per year from the abatement of UK employer pension
contributions on both the defined benefit and defined contribution schemes,
the latter was approximately £44m (2024 - £38m).
Dividend and shareholder returns
Our capital allocation policy is for the Group's financial leverage, expressed
as the ratio of Total net debt to Adjusted EBITDA, to be well under 1.5x
whilst financial leverage consistently below 1.0x may indicate a surplus
capital position. Surplus capital may be returned to shareholders by special
dividends or share buybacks, subject to the Board's discretion.
In September 2024 we extended the share buyback programme by £100m, which
completed in November 2024. A further £500m share buyback programme was
launched in November 2024 and completed in August 2025. At the end of the
financial year we had 716 million ordinary shares in issue. The weighted
average number of shares for the year was 724 million (2024 - 751 million). We
estimate that share buybacks have had a positive impact on our reported
adjusted earnings per share of around 7%. At the end of the financial year,
our financial leverage ratio was 1.0x. The Group is announcing a further share
buyback programme of £250m, expected to be completed before the end of
financial year 2026.
The Group continues to prioritise investment in its businesses whilst
maintaining a progressive approach to shareholder returns. The Board is
proposing a final dividend of 42.3p per share to be paid on 9 January 2026 to
shareholders on the register on 12 December 2025. Taken with the interim
dividend of 20.7p per share, the total dividend equates to 63.0p per share,
equivalent to the ordinary dividends of 63.0p per share in the financial year
2024.
Principal risks and uncertainties
Our principal risks and uncertainties
The directors have carried out a robust assessment of the principal risks
facing the Group, including emerging risks, that would threaten our business
model, future performance, solvency or liquidity. Outlined below are the
Group's principal risks and uncertainties. These have been detailed in the
2025 Annual Report and Accounts together with the key mitigating activities in
place to address them.
The geostrategic context
Fluctuations in commodity and energy prices
Movement in exchange rates
Health and nutrition
Workplace health and safety
Product safety and quality
Breaches of IT and information security
Our supply chain and ethical business practices
Our use of natural resources and managing our environmental impact
The impact of climate change and natural disasters on our operations
Going concern
After making enquiries, the Board has a reasonable expectation that the Group
has adequate resources to continue in operational existence for the
foreseeable future. For this reason, they continue to adopt the going concern
basis in preparing the consolidated financial statements.
The forecast for the going concern assessment period to 5 March 2027 has been
updated for the business's latest trading in October and is the best estimate
of cash flow in the period.
The Board's treasury policies are in place to maintain a strong capital base
and manage the Group's balance sheet and liquidity to ensure long-term
financial stability. These policies are the basis for investor, creditor and
market confidence and enable the successful development of the business. The
financial leverage policy requires that, in the ordinary course of business,
the Board prefers to see the Group's ratio of total net debt including lease
liabilities to adjusted EBITDA to be well under 1.5x. At the end of this
financial year, the financial leverage ratio was 1.0x. At the end of the
financial year, the Group had total cash, cash equivalents and current asset
investments of £1.1bn and an undrawn committed RCF of £1.5bn. The RCF
matures in 2029 and has no performance covenants.
In reviewing the cash flow forecast for the period, the directors reviewed the
trading for both Primark and the food businesses in light of the experience
gained from events of the last three years of trading and emerging trading
patterns as well as considering significant potential acquisitions such as
that of Hovis Group Limited. The directors have a thorough understanding of
the risks, sensitivities and judgements included in these elements of the cash
flow forecast.
As a downside scenario, the directors considered a situation in which
inflationary costs are not fully recovered through pricing, there are high
levels of volatility in the sugar market without price adjustments, there is
an adverse movement to the cash conversion cycle within the Group and severe
IT outages occur leading to a period of non-operation. This downside scenario
was modelled without taking any mitigating actions within their control. Under
this downside scenario the Group forecasts liquidity throughout the period.
In addition, the directors also considered the circumstances which would be
needed to exhaust the Group's total liquidity over the assessment period - a
reverse stress test. This indicates that, on top of the downside scenario
outlined above, annual profit before tax would need to decline by a further
16% without any price increases or other mitigating actions being taken before
total liquidity is exhausted. The likelihood of these circumstances is
considered remote for two reasons. Firstly, over such a period, management
could take substantial mitigating actions, such as reviewing pricing, taking
cost-cutting measures and reducing capital investment. Secondly, the Group has
significant business and asset diversification and would be able to, if it
were necessary, dispose of assets and/or businesses to raise considerable
levels of funds.
Directors' responsibilities in respect of the financial statements
We confirm that to the best of our knowledge:
• the financial statements, prepared in accordance with the applicable
set of accounting standards, give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Company and the
undertakings included in the consolidation taken as a whole; and
• the Strategic Report includes a fair review of the development and
performance of the business and the position of the Company and the
undertakings included in the consolidation taken as a whole, together with a
description of the principal risks and uncertainties that they face.
We consider the Annual Report and financial statements, taken as a whole, are
fair, balanced and understandable and provide the information necessary for
shareholders to assess the Company's position and performance, business model
and strategy.
The contents of this announcement, including the responsibility statement
above, have been extracted from the annual report and accounts for the 52
weeks ended 13 September 2025 which may be found at www.abf.co.uk
(http://www.abf.co.uk) and will be despatched to shareholders shortly.
Accordingly this responsibility statement makes reference to the financial
statements of the Company and the Group and to the relevant narrative
appearing in that annual report and accounts rather than the contents of this
announcement.
On behalf of the Board
Michael McLintock George Weston Eoin Tonge
Chairman Chief Executive Executive Director
4 November 2025
Consolidated income statement
for the 52 weeks ended 13 September 2025
2025 2024
Continuing operations Note £m £m
Revenue 1 19,459 20,073
Operating costs before exceptional items (17,882) (18,239)
Exceptional items 2 (188) (35)
1,389 1,799
Share of profit after tax from joint ventures and associates 103 117
Losses less profits on disposal of non-current assets (9) 16
Operating profit 1,483 1,932
Adjusted operating profit 1 1,734 1,998
Losses less profits on disposal of non-current assets (9) 16
Amortisation of non-operating intangibles (40) (40)
Acquired inventory fair value adjustments (1) (2)
Transaction costs (13) (5)
Exceptional items 2 (188) (35)
Losses less profits on sale and closure of businesses 7 (32) 26
Profit before interest 1,451 1,958
Finance income 47 71
Finance expense 3 (132) (135)
Other financial income 47 23
Profit before taxation 1,413 1,917
Adjusted profit before taxation 1,696 1,957
Losses less profits on disposal of non-current assets (9) 16
Amortisation of non-operating intangibles (40) (40)
Acquired inventory fair value adjustments (1) (2)
Transaction costs (13) (5)
Exceptional items 2 (188) (35)
Losses less profits on sale and closure of businesses 7 (32) 26
Taxation - UK (excluding tax on exceptional items) (77) (108)
- UK (on exceptional items) 9 5
- Overseas (excluding tax on exceptional items) (308) (335)
- Overseas (on exceptional items) 8 1
4 (368) (437)
Profit for the period 1,045 1,480
Attributable to
Equity shareholders 1,025 1,455
Non-controlling interests 20 25
Profit for the period 1,045 1,480
Basic and diluted earnings per ordinary share (pence) 6 141.6 193.7
Dividends per share paid and proposed for the period (pence) 5 63.0 63.0
Special dividend per share proposed for the period (pence) 5 - 27.0
Consolidated statement of comprehensive income
for the 52 weeks ended 13 September 2025
2025 2024
£m £m
Profit for the period recognised in the income statement 1,045 1,480
Other comprehensive income
Remeasurements of defined benefit schemes 155 38
Deferred tax associated with defined benefit schemes (37) (10)
Items that will not be reclassified to profit or loss 118 28
Effect of movements in foreign exchange (29) (349)
Net gain on hedge of net investment in foreign subsidiaries 1 -
Net gain/(loss) on other investments held at fair value through other 2 (5)
comprehensive income
Deferred tax on foreign exchange movements 1 -
Current tax on foreign exchange movements (1) (2)
Movement in cash flow hedging position (96) (51)
Deferred tax on cash flow hedging position movements 11 13
Deferred tax on other investment reserve movements - 1
Share of other comprehensive loss of joint ventures and associates (10) (10)
Effect of hyperinflationary economies 100 59
Items that are or may be subsequently reclassified to profit or loss (21) (344)
Other comprehensive income/(loss) for the period 97 (316)
Total comprehensive income for the period 1,142 1,164
Attributable to
Equity shareholders 1,099 1,159
Non-controlling interests 43 5
Total comprehensive income for the period 1,142 1,164
Consolidated balance sheet
at 13 September 2025
2025 2024
£m £m
Non-current assets
Intangible assets 1,892 1,896
Property, plant and equipment 6,589 6,098
Investment properties 96 105
Right-of-use assets 2,219 2,255
Investments in joint ventures 270 286
Investments in associates 100 95
Employee benefits assets 1,659 1,506
Deferred tax assets 230 223
Other equity investments 35 30
Total non-current assets 13,090 12,494
Current assets
Assets classified as held for sale 35 -
Inventories 3,169 2,942
Biological assets 120 94
Trade and other receivables 1,692 1,697
Derivative assets 23 28
Current asset investments - 334
Income tax 105 102
Cash and cash equivalents 1,057 1,323
Total current assets 6,201 6,520
Total assets 19,291 19,014
Current liabilities
Lease liabilities (293) (267)
Loans and overdrafts (258) (159)
Trade and other payables (3,068) (2,934)
Derivative liabilities (158) (97)
Income tax (167) (133)
Provisions (91) (78)
Total current liabilities (4,035) (3,668)
Non-current liabilities
Lease liabilities (2,726) (2,798)
Loans (409) (454)
Provisions (70) (60)
Income tax (15) -
Deferred tax liabilities (781) (682)
Employee benefits liabilities (69) (74)
Total non-current liabilities (4,070) (4,068)
Total liabilities (8,105) (7,736)
Net assets 11,186 11,278
Equity
Issued capital 40 42
Other reserves 181 177
Translation reserve (444) (383)
Hedging reserve (96) (45)
Retained earnings 11,378 11,395
Total equity attributable to equity shareholders 11,059 11,186
Non-controlling interests 127 92
Total equity 11,186 11,278
Consolidated cash flow statement
for the 52 weeks ended 13 September 2025
2025 2024
£m £m
Cash flow from operating activities
Profit before taxation 1,413 1,917
Losses less profits on disposal of non-current assets 9 (16)
Losses less profits on sale and closure of businesses 32 (26)
Transaction costs 13 5
Finance income (47) (71)
Finance expense 132 135
Other financial income (47) (23)
Share of profit after tax from joint ventures and associates (103) (117)
Amortisation 95 100
Depreciation (including of right-of-use assets) 893 849
Exceptional items 188 35
Acquired inventory fair value adjustments 1 2
Effect of hyperinflationary economies 19 21
Net change in the fair value of current biological assets (26) (22)
Share-based payment expense 18 31
Pension costs less contributions 65 58
(Increase)/decrease in inventories (223) 169
(Increase)/decrease in receivables (13) 23
Increase in payables 141 113
Purchases less sales of current biological assets 1 1
(Decrease)/increase in provisions (32) 30
Cash generated from operations 2,529 3,214
Income taxes paid (298) (340)
Net cash generated from operating activities 2,231 2,874
Cash flow from investing activities
Dividends received from joint ventures and associates 108 105
Purchase of property, plant and equipment (1,099) (1,124)
Purchase of intangibles (135) (60)
Lease incentives received 23 40
Sale of property, plant and equipment 13 43
Decrease/(increase) in current asset investments 334 (334)
Purchase of subsidiaries (net of cash acquired) (4) (93)
Sale of subsidiaries (4) 24
Purchase of other investments (6) (4)
Interest received 49 71
Net cash used in investing activities (721) (1,332)
Cash flow from financing activities
Dividends paid to non-controlling interests (8) (13)
Dividends paid to equity shareholders (656) (502)
Interest paid (143) (140)
Repayment of lease liabilities (351) (348)
Increase/(decrease) in short-term loans 2 (50)
(Decrease)/increase in long-term loans (6) 66
Share buyback (603) (562)
Purchase of own shares held (26) (20)
Net cash used in financing activities (1,791) (1,569)
Net decrease in cash and cash equivalents (281) (27)
Cash and cash equivalents at the beginning of the period 1,235 1,388
Effect of movements in foreign exchange (28) (126)
Cash and cash equivalents at the end of the period 926 1,235
Consolidated statement of changes in equity
for the 52 weeks ended 13 September 2025
Attributable to equity shareholders
Issued capital Other reserves Translation reserve Hedging reserve Retained earnings Total Non- controlling interests Total equity
Note £m £m £m £m £m £m £m £m
Balance as at 16 September 2023 44 179 (42) 2 10,910 11,093 100 11,193
Total comprehensive income
Profit for period recognised in income statement - - - - 1,455 1,455 25 1,480
Remeasurements of defined benefit schemes - - - - 38 38 - 38
Deferred tax associated with defined benefit schemes - - - - (10) (10) - (10)
Items that will not be reclassified to profit or loss - - - - 28 28 - 28
Effect of movements in foreign exchange - - (329) - - (329) (20) (349)
Net loss on other investments held at fair value through OCI - (5) - - - (5) - (5)
Current tax on foreign exchange movements - - (2) - - (2) - (2)
Movement in cash flow hedging position - - - (51) - (51) - (51)
Deferred tax on cash flow hedging position movements - - - 13 - 13 - 13
Deferred tax on other investment reserves movements - 1 - - - 1 - 1
Share of other comprehensive income of joint ventures and associates - - (10) - - (10) - (10)
Effect of hyperinflationary economies - - - - 59 59 - 59
Items that are or may be subsequently reclassified to profit or loss - (4) (341) (38) 59 (324) (20) (344)
Other comprehensive income - (4) (341) (38) 87 (296) (20) (316)
Total comprehensive income - (4) (341) (38) 1,542 1,159 5 1,164
Inventory cash flow hedge movements
Amounts transferred to cost of inventory - - - (9) - (9) - (9)
Total inventory cash flow hedge movements - - - (9) - (9) - (9)
Transactions with owners
Dividends paid to equity shareholders 5 - - - - (502) (502) - (502)
Net movement in own shares held - - - - 11 11 - 11
Share buyback (2) 2 - - (568) (568) - (568)
Current tax associated with share-based payments - - - - 2 2 - 2
Dividends paid to non-controlling interests - - - - - - (13) (13)
Total transactions with owners (2) 2 - - (1,057) (1,057) (13) (1,070)
Balance as at 14 September 2024 42 177 (383) (45) 11,395 11,186 92 11,278
Attributable to equity shareholders
Issued capital Other reserves Translation reserve Hedging reserve Retained earnings Total Non- controlling interests Total equity
Note £m £m £m £m £m £m £m £m
Balance as at 14 September 2024 42 177 (383) (45) 11,395 11,186 92 11,278
Total comprehensive income
Profit for period recognised in income statement - - - - 1,025 1,025 20 1,045
Remeasurements of defined benefit schemes - - - - 155 155 - 155
Deferred tax associated with defined benefit schemes - - - - (37) (37) - (37)
Items that will not be reclassified to profit or loss - - - - 118 118 - 118
Effect of movements in foreign exchange - - (52) - - (52) 23 (29)
Net gain on hedge of net investment in foreign subsidiaries - - 1 - - 1 - 1
Net gain on other investments held at fair value through OCI - 2 - - - 2 - 2
Deferred tax on foreign exchange movements - - 1 - - 1 - 1
Current tax on foreign exchange movements - - (1) - - (1) - (1)
Movement in cash flow hedging position - - - (96) - (96) - (96)
Deferred tax on cash flow hedging position movements - - - 11 - 11 - 11
Share of other comprehensive income of joint ventures and associates - - (10) - - (10) - (10)
Effect of hyperinflationary economies - - - - 100 100 - 100
Items that are or may be subsequently reclassified to profit or loss - 2 (61) (85) 100 (44) 23 (21)
Other comprehensive income - 2 (61) (85) 218 74 23 97
Total comprehensive income - 2 (61) (85) 1,243 1,099 43 1,142
Inventory cash flow hedge movements
Amounts transferred to cost of inventory - - - 34 - 34 - 34
Total inventory cash flow hedge movements - - - 34 - 34 - 34
Transactions with owners
Dividends paid to equity shareholders 5 - - - - (656) (656) - (656)
Net movement in own shares held - - - - (8) (8) - (8)
Share buyback (2) 2 - - (597) (597) - (597)
Current tax associated with share-based payments - - - - 1 1 - 1
Dividends paid to non-controlling interests - - - - - - (8) (8)
Total transactions with owners (2) 2 - - (1,260) (1,260) (8) (1,268)
Balance as at 13 September 2025 40 181 (444) (96) 11,378 11,059 127 11,186
1. Operating segments
The Group has five operating segments, as described below. These are the
Group's operating divisions, based on the management and internal reporting
structure, which combine businesses with common characteristics, primarily in
respect of the type of products offered by each business, but also the
production processes involved and the manner of the distribution and sale
of goods. The Board is the chief operating decision-maker.
Inter-segment pricing is determined on an arm's length basis. Segment result
is adjusted operating profit, as shown on the face of the consolidated income
statement. Segment assets comprise all non-current assets except employee
benefits assets, income tax assets and deferred tax assets and all current
assets except cash and cash equivalents, current asset investments and income
tax assets. Segment liabilities comprise trade and other payables, derivative
liabilities, provisions and lease liabilities.
Segment results, assets and liabilities include items directly attributable to
a segment as well as those that can be allocated on a reasonable basis.
Unallocated items comprise mainly corporate assets and expenses, cash,
borrowings, employee benefits balances and current and deferred tax balances.
Segment non-current asset additions are the total cost incurred during the
period to acquire segment assets that are expected to be used for more than
one year, comprising property, plant and equipment, investment properties,
right-of-use assets, operating intangibles and biological assets.
Businesses that are closed or disposed in the year are shown separately and
comparatives are re-presented. The Group comprises the following operating
segments:
Retail
Buying and merchandising value clothing and accessories through the Primark
and Penneys retail chains.
Grocery
The manufacture of grocery products, including hot beverages, sugar, vegetable
oils, balsamic vinegars, bread and baked goods, cereals, ethnic foods and meat
products, which are sold to retail, wholesale and foodservice businesses.
Ingredients
The manufacture of yeast and bakery ingredients as well as specialty
ingredients focused on enzymes, procession extracts, health and nutrition and
pharmaceutical delivery systems.
Sugar
The growing and processing of sugar beet and sugar cane for production of a
range of sugar and other products in Africa, the UK and Spain.
Agriculture
The manufacture of specialty feed ingredients, premix and compound animal
feed, as well as the provision of other products and services for the
agriculture sector.
Geographical information
In addition to the required disclosure for operating segments, disclosure is
also given of certain geographical information about the Group's operations,
based on the geographical groupings: United Kingdom; Europe and Africa; The
Americas; and Asia Pacific.
Revenues are shown by reference to the geographical location of customers.
Profits are shown by reference to the geographical location of the businesses.
Segment assets are based on the geographical location of the assets.
Revenue Adjusted operating profit
2025 2024 2025 2024
£m £m £m £m
Operating segments
Retail 9,489 9,448 1,126 1,108
Grocery 4,125 4,242 478 511
Ingredients 2,041 2,134 257 233
Sugar 2,054 2,328 (2) 213
Agriculture 1,616 1,650 25 41
Central (110) (100)
19,325 19,802 1,774 2,006
Businesses disposed and closed
Sugar 134 271 (40) (8)
19,459 20,073 1,734 1,998
Geographical information
United Kingdom 6,909 7,218 605 722
Europe and Africa 7,660 7,708 644 754
The Americas 2,449 2,513 399 406
Asia Pacific 2,307 2,363 126 124
19,325 19,802 1,774 2,006
Businesses disposed and closed
United Kingdom 73 79 (37) (14)
Europe and Africa 56 122 (1) -
The Americas 1 - - -
Asia Pacific 4 70 (2) 6
19,459 20,073 1,734 1,998
2025
Retail Grocery Ingredients Sugar Agriculture Central Total
£m £m £m £m £m £m £m
Revenue from continuing businesses 9,489 4,147 2,224 2,119 1,623 (277) 19,325
Internal revenue - (22) (183) (65) (7) 277 -
External revenue from continuing businesses 9,489 4,125 2,041 2,054 1,616 - 19,325
Businesses disposed and closed - - - 134 - - 134
Revenue from external customers 9,489 4,125 2,041 2,188 1,616 - 19,459
Operating profit/(loss) 1,120 424 243 (205) 11 (110) 1,483
Adjusted operating profit/(loss) before joint ventures and associates and 1,126 409 226 (8) 25 (110) 1,668
businesses disposed and closed
Share of adjusted profit after tax from joint ventures and associates - 69 31 6 - - 106
Businesses disposed and closed - - - (40) - - (40)
Adjusted operating profit/(loss) 1,126 478 257 (42) 25 (110) 1,734
Finance income - - - - - 47 47
Finance expense (95) (2) (2) (2) - (31) (132)
Other financial income - - - - - 47 47
Adjusted profit/(loss) before taxation 1,031 476 255 (44) 25 (47) 1,696
Losses less profits on disposal of non-current assets (6) 2 - - (5) - (9)
Amortisation of non-operating intangibles - (19) (12) - (9) - (40)
Acquired inventory fair value adjustments - (1) - - - - (1)
Transaction costs - (9) (2) (2) - - (13)
Exceptional items - (27) - (161) - - (188)
Losses less profits on sale and closure of businesses - - 9 (41) - - (32)
Profit/(loss) before taxation 1,025 422 250 (248) 11 (47) 1,413
Taxation - - - - - (368) (368)
Profit/(loss) for the period 1,025 422 250 (248) 11 (415) 1,045
Segment assets (excluding joint ventures and associates) 7,629 2,904 2,207 2,431 622 77 15,870
Investments in joint ventures and associates - 41 121 54 154 - 370
Segment assets 7,629 2,945 2,328 2,485 776 77 16,240
Cash and cash equivalents 1,057 1,057
Income tax 105 105
Deferred tax assets 230 230
Employee benefits assets 1,659 1,659
Segment liabilities (4,420) (732) (407) (469) (189) (189) (6,406)
Loans and overdrafts (667) (667)
Income tax (182) (182)
Deferred tax liabilities (781) (781)
Employee benefits liabilities (69) (69)
Net assets 3,209 2,213 1,921 2,016 587 1,240 11,186
Non-current asset additions 620 248 200 334 36 24 1,462
Depreciation and non-cash lease adjustments (614) (100) (74) (74) (25) (6) (893)
Amortisation (41) (25) (13) (4) (12) - (95)
2024
Retail Grocery Ingredients Sugar Agriculture Central Total
£m £m £m £m £m £m £m
Revenue from continuing businesses 9,448 4,262 2,342 2,416 1,659 (325) 19,802
Internal revenue - (20) (208) (88) (9) 325 -
External revenue from external customers 9,448 4,242 2,134 2,328 1,650 - 19,802
Businesses disposed and closed - - - 271 - - 271
Revenue from external customers 9,448 4,242 2,134 2,599 1,650 - 20,073
Operating profit/(loss) 1,100 493 219 181 31 (92) 1,932
Adjusted operating profit/(loss) before joint ventures and associates 1,108 438 201 206 33 (100) 1,886
Share of adjusted profit after tax from joint ventures and associates - 73 32 7 8 - 120
Businesses disposed and closed - - - (8) - - (8)
Adjusted operating profit/(loss) 1,108 511 233 205 41 (100) 1,998
Finance income 71 71
Finance expense (96) (1) (1) (3) (1) (33) (135)
Other financial income 23 23
Adjusted profit/(loss) before taxation 1,012 510 232 202 40 (39) 1,957
Profits less losses on disposal of non-current assets 3 5 - - - 8 16
Amortisation of non-operating intangibles - (20) (11) - (9) - (40)
Acquired inventory fair value adjustments - (1) (1) - - - (2)
Transaction costs - (2) (2) - (1) - (5)
Exceptional items (11) - - (24) - - (35)
Profits less losses on sale and closure of businesses - - 11 15 - - 26
Profit/(loss) before taxation 1,004 492 229 193 30 (31) 1,917
Taxation (437) (437)
Profit/(loss) for the period 1,004 492 229 193 30 (468) 1,480
Segment assets (excluding joint ventures and associates) 7,282 2,798 2,104 2,252 620 89 15,145
Investments in joint ventures and associates - 57 116 53 155 - 381
Segment assets 7,282 2,855 2,220 2,305 775 89 15,526
Cash and cash equivalents 1,323 1,323
Current asset investments 334 334
Income tax 102 102
Deferred tax assets 223 223
Employee benefits assets 1,506 1,506
Segment liabilities (4,347) (685) (415) (437) (178) (172) (6,234)
Loans and overdrafts (613) (613)
Income tax (133) (133)
Deferred tax liabilities (682) (682)
Employee benefits liabilities (74) (74)
Net assets 2,935 2,170 1,805 1,868 597 1,903 11,278
Non-current asset additions 702 212 180 329 43 2 1,468
Depreciation and non-cash lease adjustments (574) (100) (70) (77) (21) (7) (849)
Amortisation (39) (31) (15) (4) (11) - (100)
Operating segments - geographical information
2025
United Kingdom Europe and Africa The Americas Asia Pacific Total
£m £m £m £m £m
Revenue from external customers 6,982 7,716 2,450 2,311 19,459
Segment assets 5,572 7,113 1,751 1,804 16,240
Non-current asset additions 383 668 211 200 1,462
Depreciation (including right-of-use assets) (306) (427) (105) (55) (893)
Amortisation (18) (67) (5) (5) (95)
Acquired inventory fair value adjustments - (1) - - (1)
Transaction costs (11) - (1) (1) (13)
Exceptional items (33) (155) - - (188)
2024
United Kingdom Europe and Africa The Americas Asia Pacific Total
£m £m £m £m £m
Revenue from external customers 7,297 7,830 2,513 2,433 20,073
Segment assets 5,537 6,599 1,810 1,580 15,526
Non-current asset additions 367 726 209 166 1,468
Depreciation (including right-of-use assets) (289) (411) (97) (52) (849)
Amortisation (21) (65) (8) (6) (100)
Acquired inventory fair value adjustments - (2) - - (2)
Transaction costs (2) (1) - (2) (5)
Exceptional items (19) (16) - - (35)
The Group's operations in the following countries met the criteria for
separate disclosure:
Revenue Non-current assets
2025 2024 2025 2024
£m £m £m £m
Australia 1,414 1,409 690 656
Spain 1,846 1,972 643 713
United States 1,694 1,690 980 950
2. Exceptional items
2025
In 2025, there were exceptional charges of £188m, of which £154m related to
non-cash impairment charges and £34m related to restructuring activity that
has or will result in cash costs.
In Sugar, poorer trading performance in our Spanish sugar business, Azucarera,
resulted in impairment charges of £119m with all property, plant and
equipment of the business, with the exception of land of £21m, now fully
impaired. In May, Azucarera announced the permanent closure of the La Baneza
factory and the reconfiguration of the Miranda site resulting in exceptional
impairment and restructuring charges of £36m, of which £13m are cash costs
incurred in 2025 and a further £19m are cash costs that will be incurred in
2026 and beyond. Further impairment charges of £6m arose in respect of the
Vivergo business as a result of volatility in ethanol prices in the year.
2024
The income statement included total non-cash exceptional impairment charges of
£35m.
In Sugar, Vivergo recognised a £17m impairment charge against property, plant
and equipment and £1m against right-of-use assets driven by the volatility of
ethanol prices impacting trading margins. Due to the severe flooding in
Mozambique in 2023 and the related damage to the sugar crop fields, our sugar
business in Mozambique recognised a £3m impairment charge against property,
plant and equipment and £3m against working capital.
In Retail, the Group recognised £11m of exceptional impairment charges
relating to Primark's German stores impaired in 2022, after additional
right-of-use assets were recognised due to rent indexation adjustments.
3. Finance expense
2025 2024
£m £m
Bank loans and overdrafts (14) (19)
All other borrowings (13) (12)
Lease liabilities (102) (102)
Other payables (3) (2)
(132) (135)
4. Income tax expense
2025 2024
£m £m
Current tax expense
UK - corporation tax at 25% (2024 - 25%) 36 51
Overseas - corporation tax 318 337
UK - under provided in prior periods 5 4
Overseas - (over)/under provided in prior periods (16) 10
343 402
Deferred tax expense
UK - deferred tax 30 61
Overseas - deferred tax (6) (16)
UK - over provided in prior periods (3) (13)
Overseas - under provided in prior periods 4 3
25 35
Total income tax expense in the income statement 368 437
Reconciliation of effective tax rate
Profit before taxation 1,413 1,917
Less share of profit after taxation from joint ventures and associates (103) (117)
Profit before taxation excluding share of profit after taxation from joint 1,310 1,800
ventures and associates
Nominal tax charge at UK corporation tax rate of 25% (2024 - 25%) 327 450
Effect of higher and lower tax rates on overseas earnings (72) (92)
Effect of changes in tax rates on the income statement (2) 7
Expenses not deductible for tax purposes 95 101
Disposal of assets covered by tax exemptions or unrecognised capital losses (1) (9)
Deferred tax not recognised 31 (24)
Adjustments in respect of prior periods (10) 4
Total income tax expense in the income statement 368 437
Other comprehensive income or equity
Deferred tax associated with defined benefit schemes 37 10
Current tax associated with share-based payments (1) (2)
Deferred tax associated with movements in cash flow hedging position (11) (13)
Deferred tax associated with movements in foreign exchange (1) -
Current tax associated with movements in foreign exchange 1 2
Deferred tax associated with movements in other investment reserves - (1)
25 (4)
Pillar Two legislation has been enacted or substantively enacted in certain
jurisdictions in which the Group operates, including the UK, and is effective
for the current financial year. The current tax expense for the year in
respect of Pillar Two is £15m (2024 - £nil).
We recognise the importance of complying fully with all applicable tax laws as
well as paying and collecting the right amount of tax in every country in
which the Group operates. Our tax strategy, approved by the Board, is based on
seven tax principles that are embedded in the financial and non-financial
processes and controls of the Group. This tax strategy is available in the
Policies section of the Group's website.
5. Dividends
2025 2024 2025 2024
pence per share pence per share £m £m
2023 final and special - 45.8 - 348
2024 interim - 20.7 - 154
2024 final and special 69.3 - 508 -
2025 interim 20.7 - 148 -
90.0 66.5 656 502
The 2025 interim dividend was declared on 29 April 2025 and paid on 4 July
2025.
The Board has proposed a final dividend of £42.3p per share at an estimated
cost of £303m. The 2025 final dividend will be paid on 9 January 2026 to
shareholders on the register on 12 December 2025.
Dividends relating to the period were 63.0p per share totalling £451m (2024 -
90.0p per share totalling £662m).
6. Earnings per share
The calculation of basic earnings per share at 13 September 2025 was based on
the net profit attributable to equity shareholders of £1,025m (2024 -
£1,455m), and a weighted average number of shares outstanding during the year
of 724 million (2024 - 751 million).
The calculation of the weighted average number of shares excludes the shares
held by the Employee Share Ownership Plan Trust on which dividends are being
waived. The weighted average number of shares has reduced as a result of our
share buyback programmes. In the year, we repurchased 28.4 million shares
which were cancelled.
Adjusted earnings per ordinary share, which exclude the impact of losses less
profits on disposal of non-current assets and the sale and closure of
businesses, acquired inventory fair value adjustments, transaction costs,
amortisation of non-operating intangibles, exceptional items and any
associated tax credits, is shown to provide clarity on the underlying
performance of the Group.
Amortisation of non-operating intangibles of £40m (2024 - £40m) shown as
adjusting items in the income statement, include £3m (2024 - £3m) incurred
by joint ventures.
The diluted earnings per share calculation takes into account the dilutive
effect of share incentives. The diluted, weighted average number of shares is
724 million (2024 - 751 million). There is no material difference between
basic and diluted earnings.
2025 2024
pence per share pence per share
Adjusted earnings per share 174.9 196.9
Disposal of non-current assets (1.2) 2.1
Sale and closure of businesses (4.4) 3.5
Acquired inventory fair value adjustments (0.1) (0.3)
Transaction costs (1.8) (0.6)
Exceptional items (26.0) (4.6)
Tax effect on above adjustments and exceptional tax 4.3 0.8
Amortisation of non-operating intangibles (5.5) (5.4)
Tax credit on non-operating intangibles amortisation 1.4 1.3
Earnings per ordinary share 141.6 193.7
7. Acquisitions, disposals and closures
Acquisitions
2025
No material or significant businesses were acquired in the year.
2024
In the first half, Capsicana, a provider of Latin American products including
tortillas, pastes, kits and seasoning mixes, was acquired in Grocery. Also in
the first half, Ingredients acquired the remaining 50% stake of its existing
joint venture Roal, making it a wholly owned subsidiary. The acquisition gave
rise to negative goodwill of £7m which was recognised in the income statement
through profit on disposal of business.
In the second half, Ingredients acquired Mapo, an Italian manufacturer of
premium frozen baked goods, to support AB Mauri's Scrocchiarella product
range, Omega Yeast Labs, a leading provider of liquid yeast to the craft
brewing industry in the US, for £36m, and Romix, a specialist blender of
baking ingredients in the UK.
Also in the second half, Grocery acquired The Artisanal Group, a leading
manufacturer and wholesaler of high-quality baked goods in Australia, for
£35m.
Disposals and closures
2025
No material or significant businesses were disposed of in the first half of
the year.
In the second half, Sugar disposed of the previously moth-balled sugar
operations in Mozambique resulting in a loss of £7m. The overall loss on
disposal was £12m which includes foreign exchange losses of £5m that have
been recycled to the income statement on disposal.
Also in the second half, in Ingredients, AB Mauri completed the sale of its
90% equity interest in AB Mauri Shanghai resulting in a profit on disposal
of £7m.
In August 2025, the Group announced the closure of our Vivergo bioethanol
plant. This resulted in plant write-downs of £6m and closure costs of £24m
related to contract termination, redundancy and demolition costs.
2024
Sugar sold its remaining assets in north China for £24m net of restructuring
costs. Profit on sale was £12m compared to assets of £12m. Sugar also
disposed of a 30% associate interest in South Africa resulting in the release
of a £5m non-cash provision and a £2m charge for the closure of a small
joint venture in South Africa. In addition to acquisition of the remaining
stake in Roal as noted above, Ingredients also released £4m of surplus
provisions relating to closed factories in China.
8. Analysis of net debt
At 14 September 2024 Cash flow Acquisition and disposals New leases, non-cash items and transfers Exchange adjustments At 13 September 2025
£m £m £m £m £m £m
Short-term loans (71) (2) - (53) (1) (127)
Long-term loans (454) 6 - 53 (14) (409)
Lease liabilities (3,065) 351 - (281) (24) (3,019)
Total liabilities from financing activities (3,590) 355 - (281) (39) (3,555)
Cash at bank and in hand, cash equivalents and overdrafts 1,235 (281) - - (28) 926
Current asset investments 334 (334) - - - -
Net debt including lease liabilities (2,021) (260) - (281) (67) (2,629)
Add back: lease liabilities 3,019
Net cash before lease liabilities 390
At 16 September 2023 Cash flow Acquisition and disposals New leases, non-cash items and transfers Exchange adjustments At 14 September 2024
£m £m £m £m £m £m
Short-term loans (99) 50 (25) - 3 (71)
Long-term loans (394) (66) - - 6 (454)
Lease liabilities (3,160) 348 (8) (301) 56 (3,065)
Total liabilities from financing activities (3,653) 332 (33) (301) 65 (3,590)
Cash at bank and in hand, cash equivalents and overdrafts 1,388 (27) - - (126) 1,235
Current asset investments - 334 - - - 334
Net debt including lease liabilities (2,265) 639 (33) (301) (61) (2,021)
Add back: lease liabilities 3,065
Net cash before lease liabilities 1,044
Reconciliation of cash and short term debt to balance sheet 2025 2024
£m £m
Cash and cash equivalents 1,057 1,323
Overdrafts (131) (88)
Cash at bank and in hand, cash equivalents and overdrafts 926 1,235
Current loans and overdrafts (258) (159)
Add back: overdrafts 131 88
Short-term loans (127) (71)
Roll forward of the liabilities associated with interest paid 2025 2024
Note £m £m
Opening balance (25) (25)
Interest expense (132) (135)
Interest paid 3 143 140
Interest capitalised 4 (11) (5)
Closing balance (25) (25)
9.Related parties
The Group has a controlling shareholder relationship with its parent company,
Wittington Investments Limited, with the trustees of the Garfield Weston
Foundation and with certain other individuals who hold shares in the Company.
Further details of the controlling shareholder relationship are included in
note 31 in the 2025 ABF Group Annual Report. The Group has a related party
relationship with its associates and joint ventures (see note 31) and with
its directors. In the course of normal operations, related party transactions
entered into by the Group have been contracted on an arm's length basis.
Material transactions and year end balances with related parties were as
follows:
2025 2024
Sub note £'000 £'000
Charges to Wittington Investments Limited in respect of services provided by 1,565 984
the Company and its subsidiary undertakings
Sales to fellow subsidiary undertakings on normal trading terms 1 17 19
Sales to companies with common key management personnel on normal trading 2 13,309 9,740
terms
Amounts due from companies with common key management personnel 2 795 770
Sales to joint ventures on normal trading terms 15,876 23,172
Sales to associates on normal trading terms 89,881 103,248
Purchases from joint ventures on normal trading terms 394,159 463,030
Purchases from associates on normal trading terms 36,906 76,185
Amounts due from joint ventures 1,790 3,899
Amounts due from associates 6,924 7,804
Amounts due to joint ventures 26,161 30,240
Amounts due to associates 720 1,219
Capital commitments from joint ventures 49 -
1. The fellow subsidiary undertaking is Fortnum and Mason plc.
2. The company with common key management personnel is the George Weston
Limited group, in Canada.
10. Subsequent events
On 4 November 2025, the Board of ABF announced that it has been conducting a
review of the Group structure with a view to maximising long term value.
Although no decision has been taken, the outcome of this review may lead to
the Board deciding to undertake a separation of the Primark and Food
businesses. This review is being conducted in consultation with ABF's largest
shareholder, Wittington Investments, which remains committed to maintaining
majority ownership of both businesses. Rothschild & Co has been assisting
the Board with the review. The Board will provide an update on the review as
soon as practicable.
11. Other Information
The financial information set out above does not constitute the Company's
statutory accounts for the 52 weeks ended 13 September 2025, or the 52 weeks
ended 14 September 2024. Statutory accounts for 2024 have been delivered to
the Registrar of Companies and those for 2025 will be delivered following the
Company's annual general meeting. The auditors have reported on those
accounts. Their reports were (i) unqualified, (ii) did not include references
to any matters to which the auditors drew attention by way of emphasis without
qualifying their reports and (iii) did not contain a statement under section
498(2) or (3) of the Companies Act 2006 in respect of the accounts.
12. Basis of preparation
The Company presents its consolidated financial statements in sterling,
rounded to the nearest million, prepared on the historical cost basis except
that current biological assets and certain financial instruments are stated at
fair value, and assets classified as held for sale are stated at the lower of
carrying amount and fair value less costs to sell.
The preparation of financial statements under Adopted IFRS requires management
to make judgements, estimates and assumptions about the reported amounts of
assets and liabilities, income and expenses and the disclosure of contingent
assets and liabilities. The estimates and associated assumptions are based
on experience. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed regularly. Revisions to
accounting estimates are recognised prospectively from when the estimates are
revised.
Details of accounting standards which came into force in the year are set out
in note 13 below.
The Group's consolidated financial statements are prepared to the Saturday
nearest to 15 September. Accordingly, they have been prepared for the 52 weeks
ended 13 September 2025 (2024 - 52 weeks ended 14 September 2024).
To avoid delay in the preparation of the consolidated financial statements,
the results of certain subsidiaries, joint ventures and associates are
included to 31 August each year.
Adjustments have been made where appropriate for significant transactions or
events occurring between 31 August and 13 September.
13. New accounting standards
The Group adopted the following accounting standards and amendments during the
year with no significant impact:
• Amendments to IAS 1 Presentation of Financial Statements
• Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
• Classification of Liabilities as Current or Non-Current Liabilities;
Non-Current Liabilities with Covenants (Amendments to IAS 1)
• Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
The Group is assessing the impact of the following standards, interpretations
and amendments that are not yet effective.
Where already endorsed by the UK Endorsement Board ('UKEB'), these changes
will be adopted on the effective dates noted. Where not yet endorsed by the
UKEB, the adoption date is less certain:
• IFRS 18 Presentation and Disclosures in Financial Statements,
effective 2028 financial year (not yet endorsed by UKEB)
• IFRS 19 Subsidiaries without Public Accountability: Disclosure,
effective 2028 financial year (not yet endorsed by UKEB)
• Lack of exchangeability (Amendments to IAS 21), effective 2026
financial year
• Amendments to the Classification and Measurement of Financial
Instruments (Amendments to IFRS 9 and IFRS 7) effective 2027 financial year
• Annual improvements 2024 effective 2027 financial year
• Contracts referencing Nature-dependent Electricity (amendment to IFRS9
and IFRS7) effective 2027 financial year
14. Alternative performance measures
In reporting financial information, the Board uses various APMs which it
believes provide useful additional information for understanding the financial
performance and financial health of the Group. These APMs should be considered
in addition to IFRS measures and are not intended to be a substitute for them.
Since IFRS does not define APMs, they may not be directly comparable
to similar measures used by other companies.
The Board also uses APMs to improve the comparability of information between
reporting periods and geographical units (such as like-for-like sales) by
adjusting for non-recurring or uncontrollable factors which affect IFRS
measures, to aid users in understanding the Group's performance.
Consequently, the Board and management use APMs for performance analysis,
planning, reporting and incentive-setting.
APM Closest equivalent IFRS measure Definition/purpose Reconciliation/calculation
Like-for-like sales No direct equivalent The like-for-like sales metric enables measurement of the performance of our Consistent with the definition given
retail stores on a comparable year-on-year basis.
This measure represents the change in sales at constant currency in our retail
stores adjusted for new stores, closures and relocations. Refits, extensions
and downsizes are also adjusted for if a store's retail square footage changes
by 10% or more. For each change described above, a store's sales are excluded
from like-for-like sales for one year.
No adjustments are made for disruption during refits, extensions or downsizes
if a store's retail square footage changes by less than 10%, for
cannibalisation by new stores, or for the timing of national or bank
holidays.
It is measured against comparable trading days in each year.
Adjusted operating profit Operating profit Adjusted operating profit is stated before amortisation A reconciliation of this measure is provided on the face of the consolidated
income statement and by operating segment in note 1 of the financial
of non-operating intangibles, transaction costs, amortisation statements
of fair value adjustments made to acquired inventory, profits less
losses on disposal of non-current assets and exceptional items.
Items defined above which arise in the Group's joint ventures and associates
are also treated as adjusting items for the purposes of Adjusted operating
profit.
Adjusted operating (profit) margin No direct equivalent Adjusted operating (profit) margin is Adjusted operating profit as a See note A
percentage of revenue.
Adjusted profit before tax Profit before tax Adjusted profit before tax is stated before amortisation A reconciliation of this measure is provided on the face of the consolidated
income statement and by operating segment in note 1 of the financial
of non-operating intangibles, transaction costs, amortisation of fair value statements
adjustments made to acquired inventory, profits less losses on disposal of
non-current assets, profits less losses on sale and closure of businesses and
exceptional items.
Items defined above which arise in the Group's joint ventures and associates
are also treated as adjusting items for the purposes of Adjusted profit before
tax.
Adjusted earnings and Adjusted earnings per share Earnings and earnings per share Adjusted earnings and Adjusted earnings per share are stated before Reconciliations of these measures are provided in note 7 of the financial
amortisation of non-operating intangibles, transaction costs, amortisation of statements
fair value adjustments made to acquired inventory, profits less losses on
disposal of non-current assets, profits less losses on sale and closure of
businesses and exceptional items, together with the related tax effect.
Items defined above which arise in the Group's joint ventures and associates
are also treated as adjusting items for the purposes of Adjusted earnings and
Adjusted earnings per share.
Exceptional items No direct equivalent Exceptional items are items of income and expenditure which are significant Exceptional items are
and unusual in nature and are considered of such significance that they
require separate disclosure on the face of the income statement. included on the face of
the consolidated income statement with further detail provided in note 2 of
the financial statements
Constant currency Revenue and Adjusted operating profit (non-IFRS) measure Constant currency measures are derived by translating the relevant prior year See note B
figures at current year average exchange rates, except for countries that are
considered hyperinflationary, refer to 'Material Accounting policies'. There
are currently four countries where the Group has operations in this position
- Argentina, Malawi, Turkey and Venezuela.
Effective tax rate No direct equivalent This measure is the tax charge for the year expressed as a percentage of Whilst the Effective tax rate is not disclosed in the financial statements, a
profit before tax. reconciliation of the tax charge on profit before tax at the UK corporation
tax rate to the actual tax
charge is provided in note 5 of the financial
statements
Adjusted effective tax rate No direct equivalent This measure is the tax charge for the year excluding tax on adjusting items The tax impact of
expressed as a percentage of Adjusted profit before tax.
reconciling items between profit before tax and Adjusted profit before tax is
shown in note 7 of the financial statements
Dividend cover No direct equivalent Dividend cover is the ratio of Adjusted earnings per share to ordinary See note C
dividends per share relating to the year.
Capital expenditure No direct equivalent Capital expenditure is a measure of investment in non-current assets in See note D
existing businesses. It comprises cash outflows from the purchase of property,
plant and equipment and intangibles.
Gross investment No direct equivalent Gross investment is a measure of investment in non-current assets in existing See note E
businesses and acquisition of interests in new businesses. It comprises
capital expenditure, cash outflows from the purchase of subsidiaries, joint
ventures and associates, additional shares in subsidiary undertakings
purchased from
non-controlling interests and other investments.
Net cash/debt before lease liabilities No direct equivalent This measure comprises cash, cash equivalents and overdrafts, current asset A reconciliation of this
investments and loans.
measure is shown in note 8
Net cash/debt including lease liabilities No direct equivalent This measure comprises cash, cash equivalents and overdrafts, current asset A reconciliation of this
investments, loans and lease liabilities.
measure is shown in note 8
Adjusted EBITDA Adjusted operating profit (non-IFRS) measure Adjusted EBITDA is stated before depreciation, amortisation and impairments See note F
charged to Adjusted operating profit.
Financial leverage ratio No direct equivalent Financial leverage is the ratio of net cash/debt including lease liabilities See note F
to Adjusted EBITDA.
Free cash flow No direct This measure represents the cash that the Group generates from its operations See note G
after maintaining and investing in its capital assets.
equivalent All the items below Adjusted EBITDA can be found on the face of the cash flow
statement or derived directly from it.
Working capital comprises the movements in inventories, receivables and
payables within net cash generated from operating activities.
Net interest paid is the sum of interest received within net cash used in
investing activities and interest paid within net cash used in financing
activities.
Share of adjusted profit after tax from joint ventures and associates is the
amount on the face of the cash flow statement, plus the £3m (2024 - £3m)
non-operating intangible amortisation which is not included in Adjusted
EBITDA.
Other includes all other items from net cash generated from operating
activities and net cash used in investing activities except for the purchase
and sale of subsidiaries, joint ventures and associates, plus dividends paid
to non-controlling interests and the movement from changes in own shares held.
Total liquidity No direct Total liquidity comprises cash, cash equivalents and current asset See note H
investments, less non-qualifying borrowings and an estimate of inaccessible
equivalent cash, plus the qualifying credit facilities.
Cash, cash equivalents and current asset investments are set out in note 19.
Non-qualifying borrowings are current loans and overdrafts and any non-current
borrowings that are uncommitted or that contain covenants that could be
breached in a severe downside scenario.
Current loans and overdrafts are set out in note 20.
Inaccessible cash is generally located in jurisdictions where there is limited
access to foreign currency or where there are exchange controls. It is
estimated at 5% of cash and cash equivalents.
Qualifying credit facilities have a maturity of more than 18 months, are
committed, and either contain no performance covenants, or where they do, they
are assessed as highly unlikely to be breached even in a severe downside
scenario. At 13 September 2025, this comprised the RCF.
(Average) capital employed No direct equivalent Capital employed is derived from the management balance sheet and does not Consistent with the definition given
reconcile directly to the statutory balance sheet. All elements are
calculated in accordance with Adopted IFRS.
Average capital employed for each segment and for the Group is calculated by
averaging capital employed for each period of the year based on the
reporting calendar of each business.
Return on (average) capital employed No direct equivalent This measure expresses Adjusted operating profit as a percentage of Average Consistent with the definition given
capital employed.
(Average) working capital No direct equivalent Working capital is derived from the management balance sheet and does not Consistent with the definition given
reconcile directly to the statutory balance sheet. All elements are
calculated in accordance with Adopted IFRS.
Average working capital for each segment and for the Group is calculated by
averaging working capital for each period of the year based on the reporting
calendar of each business.
(Average) working capital as a percentage of revenue No direct equivalent This measure expresses (Average) working capital as a percentage of revenue. Consistent with the definition given
Note A
Retail Grocery Ingredients Sugar Agriculture Central, disposed and closed businesses Total
£m £m £m £m £m £m £m
2025
External revenue from continuing businesses 9,489 4,125 2,041 2,054 1,616 134 19,459
Adjusted operating profit 1,126 478 257 (2) 25 (150) 1,734
Adjusted operating margin % 11.9% 11.6% 12.6% (0.1%) 1.6% 8.9%
2024
External revenue from continuing businesses 9,448 4,242 2,134 2,328 1,650 271 20,073
Adjusted operating profit 1,108 511 233 213 41 (108) 1,998
Adjusted operating margin % 11.7% 12.1% 10.9% 9.1% 2.5% 10.0%
Note B
Retail Grocery Ingredients Sugar Agriculture Central, disposed and closed businesses Total
£m £m £m £m £m £m £m
2025
External revenue from continuing businesses at actual rates 9,489 4,125 2,041 2,054 1,616 134 19,459
2024
External revenue from continuing businesses at actual rates 9,448 4,242 2,134 2,328 1,650 271 20,073
Impact of foreign exchange (87) (105) (87) (35) (14) (2) (330)
External revenue from continuing businesses at constant currency 9,361 4,137 2,047 2,293 1,636 269 19,743
% change at constant currency +1% in line in line (10)% (1)% (1)%
Retail Grocery Ingredients Sugar Agriculture Central, disposed and closed businesses Total
£m £m £m £m £m £m £m
2025
Adjusted operating profit at actual rates 1,126 478 257 (2) 25 (150) 1,734
2024
Adjusted operating profit at actual rates 1,108 511 233 213 41 (108) 1,998
Impact of foreign exchange (5) (11) (11) (8) (1) - (36)
Adjusted operating profit at constant currency 1,103 500 222 205 40 (108) 1,962
% change at constant currency +2% (4)% +16% (101)% (38)% (12)%
Note C
2025 2024
Adjusted earnings per share (in pence) 174.9 196.9
Dividend relating to the period (in pence) - excluding special dividends 63.0 63.0
Dividend cover 3 3
Note D
2025 2024
From the cash flow statement £m £m
Purchase of property, plant and equipment 1,099 1,124
Purchase of intangibles 135 60
Capital expenditure 1,234 1,184
Note E
2025 2024
From the cash flow statement £m £m
Purchase of property, plant and equipment 1,099 1,124
Purchase of intangibles 135 60
Purchase of subsidiaries 4 93
Purchase of other investments 6 4
Gross investment 1,244 1,281
Note F
2025 2024
£m £m
Adjusted operating profit 1,734 1,998
Charged to adjusted operating profit:
Depreciation of property, plant and equipment and investment properties 588 555
Amortisation of operating intangibles 58 63
Depreciation of right-of-use assets and non-cash lease adjustments 305 294
Adjusted EBITDA 2,685 2,910
Net debt including lease liabilities (2,629) (2,021)
Financial leverage ratio 1.0x 0.7x
Note G
2025 2024
£m £m
Adjusted EBITDA (see note F) 2,685 2,910
Repayment of lease liabilities net of incentives received (328) (308)
Working capital (95) 305
Capital expenditure (see note D) (1,234) (1,184)
Purchase of subsidiaries (4) (93)
Sale of subsidiaries (4) 24
Net interest paid (94) (69)
Income taxes paid (298) (340)
Share of adjusted profit after tax from joint ventures and associates (106) (120)
Dividends received from joint ventures and associates 108 105
Other 18 125
Free cash flow 648 1,355
Note H
2025 2024
£m £m
Cash and cash equivalents 1,057 1,323
Current asset investments - 334
Current loans and overdrafts (258) (159)
Non-qualifying non-current borrowings* (16) (63)
Estimated inaccessible cash (53) (66)
Qualifying credit facilities 1,500 1,500
Total liquidity 2,230 2,869
* At 13 September 2025, , non-current borrowings on the face of the
balance sheet included the £400m public bond due in 2034 (carrying value
£393m) as qualifying borrowings.
Cautionary statements
Certain statements included in this report may constitute 'forward-looking
statements'. Forward-looking statements are all statements that do not relate
to historical facts and events, and include statements concerning the
Company's plans, objectives, goals, financial condition, strategies and future
operations and performance and the assumptions underlying these
forward-looking statements. The Company often, but not always, uses the words
'may', 'will', 'could', 'believes', 'assumes', 'intends', 'estimates',
'expects', 'plans', 'seeks', 'approximately', 'aims', 'projects',
'anticipates' or similar expressions, or the negative thereof, to generally
identify forward looking statements. Forward-looking statements may be set
forth in a number of places in this report. The Company has based these
forward-looking statements on the current view with respect to future events
and financial performance. These views involve uncertainties and are subject
to certain risks, the occurrence of which could cause actual results to differ
materially from those predicted in the forward-looking statements contained in
this report and from past results, performance or achievements. Although the
Company believes that the estimates and the projections reflected in its
forward-looking statements are reasonable, if one or more of the risks or
uncertainties materialise or occur, including those which the Company has
identified in its report, or if any of the Company's underlying assumptions
prove to be incomplete or incorrect, the Company's actual results of
operations may vary from those expected, estimated or projected. These
forward-looking statements are made only as at the date of this report. Except
to the extent required by law, the Company is not obliged to, and does not
intend to, update or revise any forward-looking statements made in this report
whether as a result of new information, future events or otherwise. All
subsequent written or oral forward-looking statements attributable to the
Company, or persons acting on the Company's behalf, are expressly qualified in
their entirety by the cautionary statements contained throughout this report.
As a result of these risks, uncertainties and assumptions, readers should not
place undue reliance on these forward-looking statements and persons needing
advice should consult an independent financial adviser. This report does not
constitute an invitation to underwrite, subscribe for or otherwise acquire or
dispose of any shares or other securities in the Company. No statement in this
report is intended to be, nor should be construed as, a profit forecast or a
profit estimate.
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. END FR PKNBDDBDBFDK
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