REG - Assoc.British Foods - Interim Results Announcements
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RNS Number : 1994B Associated British Foods PLC 21 April 2026
FOR RELEASE 21 April 2026
Interim Results Announcement
24 weeks ended 28 February 2026
Associated British Foods plc results for the 24 weeks ended 28 February 2026
Financial Headlines
24 weeks ended 24 weeks ended Actual currency Constant currency
28 February 2026 1 March 2025 change change
Group revenue £9,470m £9,509m in line (2)%
Adjusted operating profit £691m £835m (17)% (18)%
Adjusted profit before tax £663m £818m (19)%
Adjusted earnings per share 70.7p 83.6p (15)%
Operating profit £657m £710m (7)%
Profit before taxation £632m £692m (9)%
Basic earnings per share 62.7p 71.0p (12)%
Gross investment £534m £557m (4)%
Free cash flow £71m £27m
Net cash before lease liabilities £3m £201m
Total net debt £3,027m £2,772m
Interim dividend 20.7p 20.7p in line
Operating profit is stated after exceptional charges and other items as shown
on the face of the condensed consolidated income statement. In H1 2026, total
exceptional items were £8m, which relates to a non-cash impairment charge (H1
2025: £104m). 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 Interim Results Announcement.
References to changes in revenue and adjusted operating profit in the
following commentary are based on constant currency and are in comparison to
the prior year, unless stated otherwise.
George Weston, Chief Executive of Associated British Foods, said:
"We knew the first half of this financial year was going to be challenging and
that's borne out in our financial results. However, we still expect improved
Group performance in the second half.
Primark continued to make strong progress in re-energising its customer
proposition in a difficult clothing market. Our actions in the UK since the
autumn drove like-for-like sales growth and market share gains. Whilst trading
in Europe was weak, the initiatives and investments to improve performance are
underway. Primark continued to invest in stores and digital capabilities
across all its markets to deliver its ambitious growth opportunities over the
medium and long term.
Our Grocery and Ingredients businesses performed as we had expected them to,
with our US businesses impacted by weak consumer demand. Our international
Grocery brands delivered good sales growth and are positioned for a stronger
profit performance in the second half. In Sugar, the results were below our
expectations and given the current market conditions, we are more cautious on
the outlook.
We are managing the impacts of the Middle East conflict. Given what we know
today, we expect the cost consequences in 2026 to be manageable. However,
there is a risk to Primark sales if the conflict persists and consumer
spending deteriorates. Our strong balance sheet underpins the Group's
resilience."
Group
• Revenue decreased 2% and adjusted operating profit declined 18%, reflecting
continued investment in growth and certain cost impacts more weighted to the
first half of the year
• Performance across all segments was broadly as expected, with the exception of
Sugar
• Adjusted EPS decreased 15% to 70.7p, after benefitting from the accretive
impact of share buybacks
• Invested £534m in growth initiatives centred around capacity, capabilities
and new technology
• Free cash flow of £71m reflects normal seasonal working capital outflow
• Appointment of Joana Edwards as Group Chief Financial Officer and Eoin Tonge as Primark Chief Executive
Segmental performance
• Retail:
• Sales grew 2%, with good execution of new store openings contributing 4% to
growth
• In the UK, like-for-like sales grew 1.3% and Primark gained market share in a
difficult retail environment, reflecting strong progress to re-energise our
customer proposition
• In Europe, where consumer confidence remains weak and our initiatives to
improve performance are at an earlier stage, like-for-like sales declined 5.6%
• Adjusted operating margin was 10.1%
• Significant increase in investment across product, marketing, digital and
technology to drive like-for-like sales growth
• Grocery adjusted operating profit declined 20%, primarily due to our US oils
businesses including our joint venture, as expected
• Ingredients adjusted operating profit declined 7%, due to soft market demand
in bakery ingredients in the US
• Sugar adjusted operating loss of £27m, mainly as a result of lower average
selling prices in Europe
• Agriculture adjusted operating profit of £6m
Shareholder returns
• Strong balance sheet with a leverage ratio of 1.2x at 28 February 2026
• Interim dividend in line with prior year at 20.7p per share, reflecting
confidence in the Group outlook
• Completed £187m of share buybacks in 2026 to-date*, with a further £63m to
be completed in this financial year
* As at 17 April 2026
Full year outlook
The phasing of Group profit was always expected to be weighted to the second
half in 2026. Our full year outlook is currently unchanged, with the exception
of Sugar where we now expect an adjusted operating loss in 2026. We continue
to expect Group adjusted operating profit and adjusted EPS in 2026 to be below
last year.
Retail
In a consumer environment that is challenging in most of our markets, we are
continuing to strengthen our customer proposition, including our product
offer, price perception and digital customer engagement. We are already seeing
the benefits from our renewed focus and investment in the UK, which delivered
like-for-like sales growth and market share gains in H1 2026. Similar
initiatives are now in place in Europe and we expect these to drive improved
performance. An encouraging start to spring/summer trading in March was
followed by softer trading in April, as we started to see the impact of the
Middle East conflict on the consumer.
The rollout of new stores in Europe, the US and through our franchise model is
expected to contribute around 4% to sales growth in 2026. We are targeting
white space growth to continue contributing around 4% to 5% per annum to our
growth in total sales for the foreseeable future.
We continue to expect adjusted operating profit margin for the full year to be
approximately 10%. Given what we know today, we expect the cost impacts from
the Middle East conflict to be manageable in 2026 given our hedging
arrangements and cost mitigations. However, we remain alert to potential
further deterioration in consumer spending and to the longer-term impacts on
costs, such as energy, freight and fabric, all of which will depend on the
duration of the disruption.
Food
In Grocery, we expect our international brands to deliver good growth,
underpinned by investment in marketing and product innovation. US consumer
weakness impacted our cooking oils businesses in H1 2026 and we remain
cautious on the outlook. Overall, we continue to expect Grocery adjusted
operating profit in 2026 to be moderately below last year, with a strong
sequential improvement in profit in H2 2026 compared to H1 2026. This is
primarily driven by the timing of innovation and marketing in our
international brands, a reduced impact from high cocoa costs and US tariffs,
as well as normal seasonality in Grocery and other phasing impacts.
In Ingredients, we expect sales growth in our yeast and bakery ingredients
business, with the exception of the US. We also expect sales growth in our
specialty ingredients portfolio. However, as a result of increased investment
and US consumer weakness for bakery ingredients, we continue to expect
adjusted operating profit in Ingredients to be moderately below last year.
In Sugar, European profitability in H1 2026 was impacted by lower average
selling prices and higher costs of production. In Africa, rain-related impacts
reduced production in Tanzania. We do not expect to offset the H1 2026
operating loss in H2 2026 and so we now expect Sugar to deliver an adjusted
operating loss for the full year in 2026. At this stage of the year, we have
limited visibility of the size and quality of the 2026/27 beet crop in Europe,
but early indications are that the European sugar market will remain in
surplus in 2027. Given the current market environment, including a lack of
visible inflection point in European sugar prices, there is no evidence yet of
a recovery in our Sugar business in 2027.
In Agriculture, following a weak performance in H1 2026, we expect adjusted
operating profit in 2026 to be below 2025.
We are managing the impacts of the Middle East conflict on the performance of
our Food businesses. Given what we know today, we expect the direct impact on
the Group's operating costs such as energy and freight to be manageable in
2026 given our hedging arrangements and cost mitigations. We do not yet have
certainty on the indirect impacts, such as consumer demand, which will depend
on the duration of the disruption. The longer-term impact on input costs such
as energy, agrichemicals and packaging, is also unclear at this stage.
However, our businesses remain agile and focused on mitigations as conditions
continue to evolve.
Review of the Group structure
ABF has announced today that following an in-depth review of its Group
structure, as announced on 4 November 2025, the Board of ABF has decided to
proceed with a demerger of its Retail business ("Primark") from its Food
business ("FoodCo"). On completion of the demerger, ABF shareholders will hold
shares in both listed entities. Please see today's separate announcement for
further details.
For further information please contact:
Associated British Foods:
+44 20 7399 6545
Joana Edwards, Chief Financial Officer
Lucinda Baker, Director of Investor Relations
Joe Carberry, Director of Corporate Affairs
Brunswick:
+44 20 7404 5959
Rosie Oddy
Emilia Smith
There will be an analyst and investor presentation at 09.00am BST 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 annual sales of £19bn and 138,000 employees in 56
countries. It has a significant presence 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, cash generation and strong returns across our businesses
to create value for all stakeholders. This aligns with our approach to
sustainability, where we focus on what matters and where we can make a
difference.
Operating review
Retail
24 weeks ended 24 weeks ended Actual currency Constant currency
28 February 1 March 2025
2026
Revenue £m 4,657 4,472 +4% +2%
Adjusted operating profit £m 471 540 (13)% (14)%
Adjusted operating profit margin 10.1% 12.1%
Operating profit £m 469 537 (13)%
Financial summary
Market Percentage of total sales Life-for-like sales growth Total sales growth
H1 2026 H1 2025 H1 2026 H1 2025
UK and Ireland 45% +1.1% (6.0)% +2% (4)%
Europe (excluding UK and Ireland) 48% (5.6)% +1.1% (1)% +5%
US 6% +12% +17%
Primark Group(1) (2.7)% (2.5)% +2% +1%
Primark's sales grew 2%. New stores contributed 4% to growth, with good
execution across our key growth markets in Europe and the US. Like-for-like
sales declined 2.7%.
In the UK, Primark delivered good sales growth of 3% and like-for-like sales
growth of 1.3%. This strong improvement was driven by actions to re-energise
Primark's customer proposition, including a sharp focus on price perception, a
stronger product offer, and increased investment in marketing and digital
customer engagement. The growth in sales of women's clothing was particularly
encouraging. Primark gained market share in a difficult UK clothing market
that continued to decline. In continental Europe, where similar initiatives to
the UK are more recently underway and consumer confidence remains weak, sales
decreased 1% and like-for-like sales declined 5.6%. In the US, sales grew 12%
driven by new store openings.
Adjusted operating margin was 10.1%. Operating margin declined as a result of
higher markdowns, as we managed inventories effectively in a difficult trading
environment. This impact was partially offset by favourable foreign exchange
and supplier efficiencies. The operating margin also reflects a significant
increase in investment across product, marketing and digital initiatives to
drive like-for-like sales growth, and in technology as we build capability and
scale. Operational efficiencies and cost optimisation across our supply chain,
store operations and central costs helped to offset cost inflation. In H1
2025, operating profit included a non-recurring benefit of around £20m.
Market summary
Percentage of Primark sales H1 2026 sales growth
Market
UK and Ireland 45% +2 %
Spain and Portugal 17% In line
France and Italy 16% (2)%
Northern Europe 12% (5)%
Central and Eastern Europe 3% +13 %
US 6% +12 %
Primark Group(1) +2 %
In the UK, Primark delivered sales growth of 3%, like-for-like sales growth of
1.3% and increased its UK market share to 7.0%2. Our actions to re-energise
Primark's customer proposition drove a strong improvement in performance. We
also built continued momentum in our nationwide Click & Collect service,
which both contributed to growth and increased the effectiveness of our
marketing investment. Active management of our UK store estate drove a sales
uplift from store openings, relocations and extensions. The UK clothing retail
environment remained difficult in the period and the overall market declined,
reflecting cautious consumer sentiment, a soft Christmas trading period and
mild autumn weather.
In Spain and Portugal, combined sales were broadly flat. In Spain, trading was
weak in a subdued Spanish clothing market, while in Portugal our stores traded
well, including a good uplift from recent openings. In France and Italy,
combined sales declined 2%, reflecting challenging market conditions in France
and competitor intensity in both markets. Good growth in our newer markets in
Central and Eastern Europe reflected new store openings and good trading in
most markets. In our Northern European markets3, sales declined, mainly due to
lower sales in Germany in a difficult retail market.
In the US, sales grew 12%. We made good progress with new space expansion,
opening five new stores, including one store in Florida and two in Texas. We
now have 38 stores in total, with an additional nine leases signed. In H1
2026, the US retail environment was volatile and difficult, which impacted
footfall and trading. We continued to drive brand awareness through focused
investment in marketing, and sharpened our focus on Primark's key target
customers.
In October 2025, we opened the first store under our franchise model in
Kuwait. The store performed very strongly in the opening months of trading,
reflecting the strength of Primark's brand and the international appeal of our
customer proposition.
Strategic and operational summary
Our strategic focus is on re-energising Primark's customer proposition by
strengthening our product offer, our price perception and our digital
engagement with customers. We made good progress in H1 2026, particularly in
the UK.
Improvements to our product offer have initially focused on womenswear. These
have included investment in key ranges such as performance wear and denim, the
expansion of co-ordinated fashion ranges, and the launch of new ranges such as
'Scene', our new label for younger customers which has resonated well. Sales
of women's clothing improved strongly in H1 2026 and delivered like-for-like
sales growth. We have continued to sharpen Primark's price perception. In
particular, the launch of our 'Major Finds' initiative, initially in the UK
and Ireland, has been successful in reinforcing our unbeatable value to
customers, while driving footfall in stores and attachment sales. 'Major
Finds' has now been rolled out in our European markets since January.
We increased our investment in marketing to drive traffic to our website and
footfall in our stores. Website traffic grew 37% in H1 2026 and engagement was
strong, with customers researching product and stock levels ahead of store
visits. Our increased investment in paid media delivered strong returns, and
organically we made good progress with both social media and our use of CRM.
We are further ahead in the UK, but we are increasing our investment and
digital capabilities across our other markets. We expect greater integration
and optimisation of our brand and marketing campaigns to be a key driver of
like-for-likes sales growth. Initiatives to drive improved performance in
other categories, such as kidswear, menswear and lifestyle are underway. In
September, we launched Primark's first fully integrated marketing campaign in
the UK, 'In Denim We Can', which both increased sales and positively impacted
Primark's brand metrics. We recently launched our second fully integrated
marketing campaign for spring, 'Shockingly Chic', and the initial response has
been positive.
Our increasingly integrated approach to customer engagement across different
channels and in store is underpinned by investment in our digital capabilities
and assets. We are continuously improving the user experience and
functionality of our website. We significantly increased our CRM database to
reach 5 million customers and expanded the use of our Primark app to the UK,
alongside Ireland and Italy, with additional markets to be added this year.
Our Click & Collect service is now nationwide in the UK and contributing
to like-for-like sales growth as well as increasing footfall in stores,
driving attachment sales, and increasing the effectiveness of our marketing
activation.
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% to Primark's annual sales growth for the
foreseeable future. In addition, we are making good progress with our
franchise partnership with the Alshaya Group which covers the Middle East
markets, with one store in Kuwait opened in H1 2026, and two stores opened in
Dubai in March and April. We will open another store in Dubai shortly, and we
are building a strong pipeline of new stores for the region, including in
Bahrain and Qatar.
In H1 2026, we invested £210m in capital projects, including new stores in
Europe and the US. We opened a total of 11 new own stores: five in the US, two
in the UK, two in Germany and one in each of Italy and Poland. We relocated
one store and closed two stores. We increased our retail selling space by 0.3m
sq ft on a gross and net basis. On 28 February 2026, we were trading from 483
stores (including franchise stores) across 18 markets, with 19.8m sq ft of
selling space.
Our ongoing store refurbishment programme continued, completing refits in
eight stores comprising 0.4m sq ft of selling space. This included the ongoing
rollout of self-checkouts that are now in 230 stores. We continued to invest
in our depot network, including the ongoing construction of a new depot in
northern Italy, which will be completed in 2026. This additional capacity will
support growth in Europe, as well as improving stock availability and cost
efficiencies. We are also investing in technology and automation projects to
improve operational performance in our stores and depots, and to build the
capability to deliver long-term growth.
Leadership appointments
On 5 March 2026, we announced the appointment of Eoin Tonge as Chief Executive
of Primark, having served as Interim Chief Executive since 31 March 2025.
Filip Ekvall was appointed to the newly created post of Chief Commercial
Officer, which will bring together Primark's product, retail and marketing
functions, with effect from 1 September 2026.
Grocery
24 weeks ended 24 weeks ended Actual currency Constant currency
28 February 1 March 2025
2026
Revenue £m 2,072 2,089 (1)% in line
Adjusted operating profit £m 179 227 (21)% (20)%
Adjusted operating profit margin 8.6% 10.9%
Operating profit £m 169 219 (23)%
Financial summary
Grocery sales were in line with H1 2025, with growth in international brands
offset by lower sales of US oils. Grocery adjusted operating profit declined
20% to £179m and adjusted operating margin was 8.6%, as expected. This was
primarily due to the decline in our US oils businesses, including a lower
profit contribution from our joint venture, Stratas. Grocery profit was also
impacted by the effects of higher cocoa costs and US tariffs on our
international brands.
Business summary
Within our international brand businesses(4,) Twinings delivered good
volume-led sales growth, particularly in the US, its largest market, and
Australia. Growth was driven by increased investment in effective marketing,
good product innovation, improved in-store visibility and expansion of
e-commerce sales. We continued to build momentum across our portfolio of
wellness teas, leveraging our strong position in black tea. Ovaltine had a
mixed performance by market. We continued to recover from the disruption
caused by cocoa-related price increases last year through focused commercial
execution, strong product innovation and increased marketing investment.
Overall Ovaltine profitability had a continued impact from higher cocoa costs
which will be lower in H2 2026. Our new manufacturing facility in Nigeria is
now operational and will support continued growth in Africa. Our other
international brands performed well, with Blue Dragon, Jordans and Mazzetti
all delivering strong sales growth supported by good innovation.
Within our US-focused businesses(5), sales and profits declined in our
consumer oils businesses, as expected. In Mazola, this was primarily the
result of our core Hispanic consumer base reducing their expenditure. We
remained well-invested in targeted promotional and marketing activities to
support Mazola's leading market share and strong brand equity. Our joint
venture, Stratas, a leading supplier of oils and other products to the
foodservice, ingredients and retail markets, delivered a lower contribution to
operating profit primarily due to pressures on customer expenditure leading to
reduced demand for out-of-home eating, and their margins were lower.
Most of our UK-focused businesses(6) performed well, including strong
double-digit sales growth in our sports nutrition business, while sales in
Silver Spoon were lower. Ryvita delivered a good improvement in profitability
following our restructuring actions last year. In August 2025, 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 to invest in innovation and create a
sustainably profitable bakeries business. We continued to make good progress
with the CMA and welcomed their Interim Report published on 26 March 2026. We
are focused on achieving regulatory clearance as efficiently as possible.
In our Australia and New Zealand-focused businesses(7), sales in our Tip Top
bread and Don meats businesses were resilient in a consumer environment that
remained challenging, while sales of The Artisanal Group, which sells
high-quality baked goods to cafes and restaurants, were more impacted. A fire
in one of our Tip Top bread lines also impacted profitability in the period
but is now fully operational again. In H1 2026, we commissioned our new bakery
line in Western Australia, where Tip Top is the leading supplier.
Ingredients
24 weeks ended 24 weeks ended Actual currency Constant currency
28 February 1 March 2025
2026
Revenue £m 1,004 1,031 (3)% (2)%
Adjusted operating profit £m 112 120 (7)% (7)%
Adjusted operating profit margin 11.2% 11.6%
Operating profit £m 107 115 (7)%
Ingredients sales decreased 2%, adjusted operating profit decreased by 7% and
adjusted operating margin was 11.2%, primarily reflecting weakness in demand
for bakery ingredients in the US.
Sales in our yeast and bakery ingredients business declined, primarily due to
lower customer demand for bakery ingredients in the US, reflecting weakness in
consumer spending. There was also subdued demand for specialty yeast for use
in alcohol beverages. Performance across our other markets and categories was
relatively resilient, benefitting from our broad product portfolio, good
innovation in bakery ingredients and strong route to market. We made progress
with strategic investments to drive long-term growth, including the
construction of our fresh yeast plant in Northern India.
Our specialty ingredients businesses, ABFI, delivered modest growth overall.
In our pharmaceutical businesses, we had good growth in our excipient, actives
and vaccine-related product lines, partially offset by lower lipid sales. Our
businesses in the food and beverage, and health and nutrition markets
performed well, with growth in yeast extracts, enzymes, botanicals and
extruded protein crisps. We continued to invest in R&D, commercial
capabilities and strategic capital projects to drive long-term growth. In H1
2026, we commissioned new capacity for our yeast extracts business in Germany
and in March, our pharmaceutical business, SPI Pharma, agreed to acquire
Elementis Pharma GmbH to strengthen its position in actives and expand its
offering in digestive health.
During H1 2026, we made good progress with the relocation of our flour mill in
Victoria, which is expected to be completed this financial year. New Food
Coatings, our joint venture ('JV') in Australia, New Zealand and south east
Asia, specialising in seasonings, sauces and ingredients, performed well.
Sugar
24 weeks ended 24 weeks ended Actual currency Constant currency
28 February 1 March 2025
2026
Revenue from continuing businesses £m 971 1,031 (6)% (9)%
Adjusted operating (loss)/profit £m (27) 8 (438)% (345)%
Adjusted operating (loss)/profit margin (2.8)% 0.8%
Operating loss £m (39) (122) +68%
Sugar sales declined 9% and the segment had an adjusted operating loss of
£27m due to low European sugar prices.
In the UK(8), sales and profit declined significantly in H1 2026 as a result
of lower average selling prices compared to H1 2025, reduced export sales and
a reduction in the estimated net realisable value of our sugar inventories.
This was partially offset by a benefit from lower negotiated beet prices for
the 2025/26 campaign. The processing of our UK beet crop for the 2025/26
campaign is now complete and sugar production was approximately 1.0m tonnes,
which is below last year due to lower acreage, as intended. Our Spanish
business, Azucarera, had a reduced operating loss in H1 2026 as a result of
our recent restructuring actions.
In Africa(8), sales growth was driven by Malawi and Tanzania. However, overall
profit was lower due to reduced sales in South Africa and Eswatini, and the
impact of rain on production in Tanzania. In October, we began production in
our new sugar mill in Tanzania and while rain slowed the pace of start up in
H1 2026, we expect to make further progress when the next season begins in
June.
Agriculture
24 weeks ended 24 weeks ended Actual currency Constant currency
28 February 1 March 2025
2026
Revenue £m 757 819 (8)% (7)%
Adjusted operating profit £m 6 12 (50)% (54)%
Adjusted operating profit margin 0.8% 1.5%
Operating profit £m 6 7 (14)%
Agriculture sales declined 7% and adjusted operating profit was £6m. This
reflected a decline in compound feed, following the loss of a large customer
and we are adjusting our cost base accordingly. We had a lower profit
contribution from our joint venture, Frontier, due to the impact of
unfavourable market conditions and a small UK crop size on their grain trading
business.
Our speciality feed and additives businesses delivered strong growth. In
particular, Premier Nutrition in the UK performed strongly, and AB Vista, our
international feed additives business, delivered good growth in both enzyme
and non-enzyme products.
(1. )Primark Group includes franchise revenue, which in H1 2026 comprised
one franchise store in Kuwait.
(2. )Kantar, Primark market share of the total UK clothing, footwear and
accessories market including online by value, 24-week data to 1 March 2026.
(3.) Northern Europe comprises Germany, the Netherlands, Belgium and Austria.
(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) US-focused businesses, which include Mazola and Fleischmann's, accounted
for approximately 15% of total Grocery sales.
(6) UK-focused businesses, which include Allied Bakeries, Westmill and Silver
Spoon, accounted for approximately a quarter of total Grocery sales.
(7) Australia and New Zealand-focused businesses, which includes Tip Top,
accounted for approximately a quarter of total Grocery sales.
(8) Our European sugar businesses in the UK and Spain accounted for just under
50% of total Sugar sales, our African sugar business accounted for just over
50% of total Sugar sales.
Financial review
Group performance
Group revenue in the period was £9.5bn, in line with last year at actual
rates and 2% lower at constant currency, with growth in Retail offset by
declines in Sugar, Ingredients and Agriculture. The Group generated an
adjusted operating profit of £691m, a decrease of 17% at actual rates.
Adjusted operating profit declined 18% at constant currency, reflecting an
adjusted operating loss in Sugar and a decline in adjusted operating profit in
Retail and across the remaining food divisions. Operating profit for the Group
of £657m was 7% lower, after exceptional items of £8m (H1 2025 - £104m).
Segmental summary
Revenue Adjusted operating profit
24 weeks 52 weeks 24 weeks 52 weeks
ended 28 February 24 weeks ended 13 September ended 28 February 24 weeks ended 13 September
2026 ended 1 2025 2026 ended 1 2025
£m March 2025 Change £m £m March 2025 Change £m
At actual rates £m % £m %
Retail 4,657 4,472 +4.1 9,489 471 540 (12.8) 1,126
Grocery 2,072 2,089 (0.8) 4,125 179 227 (21.1) 478
Ingredients 1,004 1,031 (2.6) 2,041 112 120 (6.7) 257
Sugar 971 1,031 (5.8) 2,054 (27) 8 (437.5) (2)
Agriculture 757 819 (7.6) 1,616 6 12 (50.0) 25
Central - - - (46) (46) - (110)
9,461 9,442 +0.2 19,325 695 861 (19.3) 1,774
Business disposed and
closed
Sugar 9 67 134 (4) (26) (40)
9,470 9,509 (0.4) 19,459 691 835 (17.2) 1,734
The segmental analysis by division has been set out in the operating reviews.
Business disposed and closed relates to the closure of our Sugar Vivergo
business at the end of the previous financial year and we have incurred some
immaterial sales and closure costs in H1 2026 as part of this closure. In H1
2025, our disposed business related to the sale of our China North Sugar and
Vivergo businesses.
The segmental analysis by geography is set out in note 1 of the condensed
financial statements.
Adjusted earnings per share
52 weeks ended
24 weeks ended 24 weeks ended 13 September
28 February 2026 1 March 2025 Change 2025
£m £m % £m
Adjusted operating profit 691 835 (17.2) 1,734
Finance income 19 27 47
Finance expense (19) (16) (30)
Lease interest expense (49) (48) (102)
Other financial income 21 20 47
Adjusted profit before taxation 663 818 (18.9) 1,696
Taxation on adjusted profit (162) (197) (410)
Adjusted profit after tax 501 621 (19.3) 1,286
Adjusted earnings attributable to equity shareholders 502 612 (18.0) 1,266
Adjusted earnings per share (in pence) 70.7 p 83.6 p (15.4) 174.9 p
Interest and other financial income
Finance income decreased as a result of lower cash balances and lower rates of
interest earned, as most market interest rates have fallen. We expect finance
income in H2 2026 to be in line with the prior year.
Other financial income is in line with prior year, with an improvement in
returns on interest earned on defined benefit pension fund assets offset by
hyperinflation adjustments in Argentina and a lack of exchangeability foreign
exchange provision in Malawi.
On an adjusted basis, profit before tax was down 18.9%, to £663m.
Taxation on adjusted profit
In H1 2026, the adjusted tax charge reduced to £162m, largely driven by the
reduction in adjusted profit before tax, as the adjusted effective tax rate of
24.5% in H1 2026 is broadly consistent with the 24.1% in H1 2025.
Adjusted earnings per share decreased by 15.4% to 70.7p per share. This was
driven by the decrease in adjusted earnings, lower finance income and higher
finance interest expense. Adjusted earnings per share continues to benefit
from the reduction in the weighted average number of shares, from 732 million
in H1 2025 to 710 million in H1 2026, as a result of ongoing share buybacks.
The weighted average number of shares will continue to reduce as we complete
the current buyback programme. At the end of H1 2026, £117m remained to be
completed in H2 2026.
Basic earnings per share
52 weeks ended
24 weeks ended 24 weeks ended 13 September
28 February 2026 1 March 2025 Change 2025
£m £m % £m
Adjusted profit before taxation 663 818 (18.9) 1,696
Acquired inventory fair value adjustments - - (1)
Amortisation of non-operating intangibles (20) (19) (40)
Exceptional items (8) (104) (188)
Profits less losses on sale and closure of businesses 3 (1) (32)
Profits less losses on disposal of non-current assets 3 (2) (9)
Transaction costs (9) - (13)
Profit before tax 632 692 (8.7) 1,413
Taxation (188) (163) (368)
Profit after tax 444 529 (16.1) 1,045
Earnings attributable to equity shareholders 445 520 (14.4) 1,025
Basic earnings per share (in pence) 62.7 p 71.0 p (11.7) 141.6 p
Profit before tax of £632m decreased by 8.7%.
This included a non-cash exceptional impairment charge of £8m in the Sugar
segment. Our Spanish Sugar business, Azucarera, has continued to be impacted
by poor trading performance and a further impairment charge was recognised on
newly acquired property, plant and equipment. In H1 2025, the non-cash
exceptional impairment charge related to our Sugar business and comprised a
full impairment charge of £101m on property, plant and equipment in
Azucarera, and a further £3m impairment charge was taken in our Vivergo
business, which has subsequently been closed.
In H1 2026 and 2025, there were no material or significant costs incurred on
the sale and closure of businesses or disposal of non-current assets.
Transaction costs of £9m have been incurred both in relation to our proposed
acquisition of the Hovis Group which is subject to regulatory approval and
where a decision is expected later in the financial year as well as the
strategic review costs for the announced demerger of the Group's Retail
business from its Food business. No transactions costs were incurred in H1
2025.
Total tax charge was £188m (H1 2025 - £163m). The increase in the total tax
charge for H1 2026 is primarily due to a £30m deferred tax charge relating to
the derecognition of deferred tax assets in Azucarera, which has arisen due to
the announced demerger of the Group's Retail business from its Food business.
Earnings attributable to equity shareholders were £445m and basic earnings
per share decreased by 11.7% to 62.7p.
Cash flow
24 weeks ended 24 weeks ended 52 weeks ended
28 February 1 March 13 September
2026 2025 2025
£m £m £m
Adjusted EBITDA 1,172 1,290 2,685
Repayment of lease liabilities net of incentives received (165) (158) (328)
Working capital (227) (318) (95)
Capital expenditure (517) (553) (1,234)
Purchase of subsidiaries - (1) (4)
Sale and closure of subsidiaries (5) (1) (4)
Net interest paid (48) (39) (94)
Taxation (130) (147) (298)
Share of adjusted profit after tax from joint ventures and associates (35) (53) (106)
Dividends received from joint ventures and associates 46 54 108
Other (20) (47) 18
Free cash flow 71 27 648
Share buyback (128) (363) (603)
Dividends (301) (508) (656)
Movement in loans and current asset investments (6) 228 330
Cash flow (364) (616) (281)
In H1 2026, the free cash inflow was £71m an increase from H1 2025 reflecting
reduced working capital movements, specifically a reduction in Primark
inventory since the end of the previous financial year, which offset the lower
operating profit.
Capital expenditure was broadly in line with H1 2025 and reflects the
investment in a number of large, multi year projects, including the completion
of the construction of our major sugar mill in Tanzania.
There were no material acquisitions or disposals in H1 2026.
The level of cash tax was slightly lower than in H1 2025, reflecting the
reduced profits. For 2026, we expect cash tax levels to be slightly lower than
2025. Net interest paid reflects lower interest received from decreased cash
deposits. Our share of adjusted profit after tax from joint ventures and
associates declined as a result of lower profits in our US joint venture
Stratas.
The cash outflow for share buybacks in H1 2026 was £128m and relates to the
additional £250m share buyback programme announced at the end of the last
financial year. We also paid £301m for total dividends in H1 2026, reflecting
the final dividend declared in respect of the prior financial year.
The decrease in loans and current asset investments movements was due to cash
deposits placed with a greater than 90-day term not being held in H1 2026.
Financing and liquidity
At 28 February At 1 March At 13 September
2026 2025 2025
£m £m £m
Short-term loans (51) (37) (127)
Long-term loans (500) (454) (409)
Lease liabilities (3,030) (2,973) (3,019)
Total debt (3,581) (3,464) (3,555)
Cash at bank and in hand, cash equivalents and overdrafts 554 626 926
Current asset investments - 66 -
Total net debt (3,027) (2,772) (2,629)
Leverage ratio 1.2x 1.0x 1.0x
At 28 February 2026, the Group held cash, cash equivalents and current asset
investments of £554m. In addition, the Group has an undrawn Revolving Credit
Facility ('RCF') of £1.5bn, and a further undrawn £300m Revolving Credit
Facility, both of which are free from performance covenants and mature in June
2029 and February 2029 respectively. The £300m additional RCF was taken out
in February 2026 to top up the Group's liquidity in line with internal
financial policy.
Total liquidity at 28 February 2026 was £2.2bn, comprised £0.7bn of cash and
cash equivalents, less non-qualifying borrowings and inaccessible cash of
£0.4bn, plus the £1.8bn RCFs highlighted above. This compares and is in line
with the £2.2bn at the end of the prior financial year and £2.1bn at the end
of H1 2025.
Total net debt increased by £398m in H1 2026 to £3,027m compared to the
prior financial year end, as a result of £372m lower cash at bank and in hand
and cash equivalents. A combination of lower adjusted earnings and higher
total net debt from lower cash flow resulted in a higher leverage ratio of
1.2x at 28 February 2026, compared to 1.0x at the prior financial year end.
Pensions
Employee benefits assets primarily comprise the accounting surplus of the
Group's UK defined benefit scheme. On 28 February 2026, the surplus in the UK
was £1,683m (H1 2025 - £1,506m; 2025 full year - £1,586m). The increase
from the prior financial year end reflects positive asset returns partially
offset by an increase in pension liabilities due to a reduction in corporate
bond yields and an increase in the long term expected inflation assumption.
Dividends and share buyback
As announced in November 2025, we have initiated an additional £250m of share
buybacks which we expect to complete in this financial year. In H1 2026, we
completed £133m of buybacks with a remaining amount of £117m expected to be
completed in H2 2026.
The Board has declared an interim dividend of 20.7p per share, reflecting our
confidence in the Group outlook. The dividend will be paid on 3 July 2026 to
shareholders registered at the close of business on 29 May 2026.
Our principal risks and uncertainties
The delivery of our strategic objectives is dependent on effective risk
management. There are a number of potential risks and uncertainties which
could have a material impact on the Group's performance and could cause actual
results to differ materially from expected and historical results. Details of
the principal risks facing the Group's businesses at an operational level were
included on pages 81 to 90 of the Group's Annual Report and Accounts for the
52 weeks ended 13 September 2025, as part of the Strategic Report.
We have reassessed our principal risks for the remaining six months of the
financial year as the world continues to face political and economic turmoil.
The geopolitical landscape faces increased instability including ongoing
conflicts in Iran and across the Middle East and in Ukraine. In addition,
there is uncertainty surrounding US international policy and an increased risk
of tariff escalations between major economies. These events have resulted in
instability of energy and freight prices. The uncertainty regarding the scale
and duration of any blockade of the Strait of Hormuz is expected to affect
both the availability and cost of raw materials and critical commodities. Our
businesses continue to work closely with suppliers to maintain the effective
operation of our supply chains and manage commodity price risk under their
existing risk management frameworks. In addition, the businesses are well
hedged in respect of energy and foreign exchange.
Consumer sentiment remains cautious and trading activity within elements of
our shopper base continues to be weak. Consumer confidence could deteriorate
further as a number of key markets face both stagnant growth and higher
inflation resulting in an increased risk of recession and fears of rising
unemployment. The impact on our businesses is uncertain and will depend on the
extent of governments' collaboration and intervention, the extent of increased
taxation on individuals and businesses and the duration of the wars and
economic downturns.
Volatile commodity prices and fluctuating currency movements add financial
pressure and operational complexity across our diverse portfolio. In response,
the businesses have enhanced risk monitoring and continue to have robust
procurement strategies and operate agile supply chains.
The threats of a cyber-attack have further increased as a result of
geopolitical tensions and our businesses remain on high alert to the
heightened risk of IT security breaches and cyber-based attacks. We continue
to make significant investments in cyber resilience, monitoring and detection
capabilities.
Going concern
After making enquiries, the directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence to the end
of the 2027 financial year. For this reason, they continue to adopt the going
concern basis in preparing the Condensed Consolidated Interim Financial
Statements. See note 11 to the Condensed Consolidated Interim Financial
Statements.
Condensed consolidated income statement
for the 24 weeks ended 28 February 2026
24 weeks ended 24 weeks ended 52 weeks ended
28 February 2026 1 March 2025 13 September
2025
£m £m £m
Continuing operations Note
Revenue 1 9,470 9,509 19,459
Operating costs before exceptional items (8,841) (8,744) (17,882)
Exceptional items 2 (8) (104) (188)
621 661 1,389
Share of profit after tax from joint ventures and associates 33 51 103
Profits less losses on disposal of non-current assets 3 (2) (9)
Operating profit 657 710 1,483
Adjusted operating profit 691 835 1,734
Profits less losses on disposal of non-current assets 3 (2) (9)
Amortisation of non-operating intangibles (20) (19) (40)
Acquired inventory fair value adjustments - - (1)
Transaction costs (9) - (13)
Exceptional items 2 (8) (104) (188)
(1) (32)
Profits less losses on sale and closure of businesses 6 3
Profit before interest 660 709 1,451
Finance income 19 27 47
Finance expense (68) (64) (132)
Other financial income 21 20 47
Profit before taxation 632 692 1,413
Adjusted profit before taxation 663 818 1,696
Profits less losses on disposal of non-current assets 3 (2) (9)
Amortisation of non-operating intangibles (20) (19) (40)
Acquired inventory fair value adjustments - - (1)
Transaction costs (9) - (13)
Exceptional items 2 (8) (104) (188)
Profits less losses on sale and closure of businesses 6 3 (1) (32)
Taxation - UK (excluding tax on exceptional items) (8) (30) (77)
- UK (on exceptional items) - 1 9
- Overseas (excluding tax on exceptional items) (150) (159) (308)
- Overseas (on exceptional items) (30) 25 8
3 (188) (163) (368)
Profit for the period 444 529 1,045
Attributable to
Equity shareholders 445 520 1,025
Non-controlling interests (1) 9 20
Profit for the period 444 529 1,045
Basic and diluted earnings per ordinary share (pence) 4 62.7 71.0 141.6
Dividends per share paid and proposed for the period (pence) 5 20.7 20.7 63.0
Condensed consolidated statement of comprehensive income
52 weeks ended
24 weeks ended 24 weeks ended 13 September
28 February 2026 1 March 2025 2025
£m £m £m
Profit for the period recognised in the income statement 444 529 1,045
Other comprehensive income
Remeasurements of defined benefit schemes 90 63 155
Deferred tax associated with defined benefit schemes (22) (15) (37)
Items that will not be reclassified to profit or loss 68 48 118
Effect of movements in foreign exchange 235 (27) (29)
Net (loss)/gain on hedge of net investment in foreign subsidiaries (2) 2 1
Net gain on other investments held at fair value through other
comprehensive income - - 2
Deferred tax on foreign exchange movements - (1) 1
Current tax on foreign exchange movements (1) - (1)
Movement in cash flow hedging position 95 152 (96)
Deferred tax on cash flow hedging position movements (20) (32) 11
Share of other comprehensive profit/(loss) of joint ventures and associates 3 3 (10)
Effect of hyperinflationary economies 37 41 100
Deferred tax associated with hyperinflationary economies - (10) -
Items that are or may be subsequently reclassified to profit or loss 347 128 (21)
Other comprehensive income for the period 415 176 97
Total comprehensive income for the period 859 705 1,142
Attributable to
Equity shareholders 840 688 1,099
Non-controlling interests 19 17 43
Total comprehensive income for the period 859 705 1,142
Condensed consolidated balance sheet
at 28 February 2026
28 February 2026 1 March 2025 13 September 2025
£m £m £m
Note
Non-current assets
Intangible assets 1,944 1,924 1,892
Property, plant and equipment 6,984 6,265 6,589
Investment properties 95 105 96
Right-of-use assets 2,222 2,192 2,219
Investments in joint ventures 251 275 270
Investments in associates 141 106 100
Employee benefits assets 1,762 1,572 1,659
Deferred tax assets 202 237 230
Other equity investments 35 31 35
Total non-current assets 13,636 12,707 13,090
Current assets
Assets classified as held for sale 33 - 35
Inventories 3,250 3,180 3,169
Biological assets 170 141 120
Trade and other receivables 1,706 1,611 1,692
Derivative assets 43 141 23
Current asset investments - 66 -
Income tax 76 79 105
Cash and cash equivalents 712 758 1,057
Total current assets 5,990 5,976 6,201
Total assets 19,626 18,683 19,291
Current liabilities
Liabilities classified as held for sale (4) - -
Lease liabilities 7 (501) (456) (293)
Loans and overdrafts 7 (209) (169) (258)
Trade and other payables (2,951) (2,875) (3,068)
Derivative liabilities (88) (35) (158)
Income tax (148) (127) (167)
Provisions (74) (52) (91)
Total current liabilities (3,975) (3,714) (4,035)
Non-current liabilities
Lease liabilities 7 (2,529) (2,517) (2,726)
Loans 7 (500) (454) (409)
Provisions (68) (65) (70)
Income tax (5) (7) (15)
Deferred tax liabilities (858) (753) (781)
Employee benefits liabilities (73) (75) (69)
Total non-current liabilities (4,033) (3,871) (4,070)
Total liabilities (8,008) (7,585) (8,105)
Net assets 11,618 11,098 11,186
Equity
Issued capital 40 41 40
Other reserves 181 178 181
Translation reserve (229) (414) (444)
Hedging reserve (20) 78 (96)
Retained earnings 11,488 11,112 11,378
Total equity attributable to equity shareholders 11,460 10,995 11,059
Non-controlling interests 158 103 127
Total equity 11,618 11,098 11,186
Condensed consolidated cash flow statement
for the 24 weeks ended 28 February 2026
24 weeks ended 52 weeks ended
28 February 24 weeks ended 13 September
2026 1 March 2025 2025
£m £m £m
Note
Cash flow from operating activities
Profit before taxation 632 692 1,413
Profits less losses on disposal of non-current assets (3) 2 9
Profits less losses on sale and closure of businesses (3) 1 32
Transaction costs 9 - 13
Finance income (19) (27) (47)
Finance expense 68 64 132
Other financial income (21) (20) (47)
Share of profit after tax from joint ventures and associates (33) (51) (103)
Amortisation 48 42 95
Depreciation (including of right-of-use assets) 451 430 893
Exceptional items 8 104 188
Acquired inventory fair value adjustments - - 1
Effect of hyperinflationary economies 10 7 19
Net change in the fair value of current biological assets (39) (52) (26)
Share-based payment expense 7 13 18
Pension costs less contributions 34 29 65
Increase in inventories (16) (248) (223)
Decrease/(increase) in receivables 45 77 (13)
(Decrease)/increase in payables (256) (147) 141
Purchases less sales of current biological assets 3 5 1
Decrease in provisions (14) (19) (32)
Cash generated from operations 911 902 2,529
Income taxes paid (130) (147) (298)
Net cash generated from operating activities 781 755 2,231
Cash flow from investing activities
Dividends received from joint ventures and associates 46 54 108
Purchase of property, plant and equipment (464) (490) (1,099)
Purchase of intangibles (53) (63) (135)
Lease incentives received 9 11 23
Sale of property, plant and equipment 12 5 13
Decrease in current asset investments 7 - 268 334
Purchase of subsidiaries, joint ventures and associates - (1) (4)
Disposal and sale of subsidiaries (5) (1) (4)
Purchase of other investments (17) (3) (6)
Interest received 19 27 49
Net cash used in investing activities (453) (193) (721)
Cash flow from financing activities
Dividends paid to non-controlling interests (4) (6) 8)
Dividends paid to equity shareholders 5 (301) (508) (656)
Interest paid (67) (66) (143)
Repayment of lease liabilities 7 (174) (169) (351)
(Decrease)/increase in short-term loans 7 (32) (35) 2
Increase/(decrease) in long-term loans 7 26 (5) (6)
Share buyback (128) (363) (603)
Purchase of own shares held (12) (26) (26)
Net cash used in financing activities (692) (1,178) (1,791)
Net decrease in cash and cash equivalents (364) (616) (281)
Cash and cash equivalents at the beginning of the period 926 1,235 1,235
Effect of movements in foreign exchange (8) 7 (28)
Cash and cash equivalents at the end of the period 7 554 626 926
Condensed consolidated statement of changes in equity
For the 24 weeks ended 28 February 2026
Attributable to equity shareholders
Issued Other Translation Hedging Retained Non-
capital reserves reserve reserve earnings Total controlling Total
Note £m £m £m £m £m £m Interests Equity
£m £m
Balance as at 13 September 2025 40 181 (444) (96) 11,378 11,059 127 11,186
Total comprehensive income
Profit/(loss) for period recognised in income statement Remeasurements of - - - - 445 445 (1) 444
defined benefit schemes
- - - - 90 90 - 90
Deferred tax associated with defined benefit schemes
- - - - (22) (22) - (22)
Items that will not be reclassified to profit or loss - - - - 68 68 - 68
Effect of movements in foreign exchange - - 215 - - 215 20 235
Net loss on hedge of net investment in foreign subsidiaries - - (2) - - (2) - (2)
Current tax on foreign exchange movements - - (1) - - (1) - (1)
Movement in cash flow hedging position - - - 95 - 95 - 95
Deferred tax on cash flow hedging position movements - - - (20) - (20) - (20)
Share of other comprehensive income of joint ventures and associates
- - 3 - - 3 - 3
Effect of hyperinflationary economies - - - - 37 37 - 37
Items that are or may be subsequently reclassified to profit or loss - - 215 75 37 327 20 347
Other comprehensive income - - 215 75 105 395 20 415
Total comprehensive income - - 215 75 550 840 19 859
Inventory cash flow hedge movements
Amounts transferred to cost of inventory - - - 1 - 1 - 1
Total inventory cash flow hedge movements - - - 1 - 1 - 1
Transactions with owners
Dividends paid to equity shareholders 5 - - - - (301) (301) - (301)
Net movement in own shares held - - - - (5) (5) - (5)
Share buyback - - - - (134) (134) - (134)
Dividends paid to non-controlling interests - - - - - - (4) (4)
Additional investment by Non-controlling interest - - - - - - 16 16
Total transactions with owners - - - - (440) (440) 12 (428)
Balance as at 28 February 2026 40 181 (229) (20) 11,488 11,460 158 11,618
Balance as at 14 September 2024 42 177 (383) (45) 11,395 11,186 92 11,278
Total comprehensive income
Profit for the period recognised in the income statement - - - - 520 520 9 529
Remeasurements of defined benefit schemes - - - - 63 63 - 63
Deferred tax associated with defined benefit schemes - - - - (15) (15) - (15)
Items that will not be reclassified to profit or loss - - - - 48 48 - 48
Effect of movements in foreign exchange - - (35) - - (35) 8 (27)
Net gain on hedge of net investment in foreign subsidiaries - - 2 - - 2 - 2
Deferred tax on foreign exchange movements - - (1) - - (1) - (1)
Movement in cash flow hedging position - - - 152 - 152 - 152
Deferred tax on cash flow hedging position movements - - - (32) - (32) - (32)
Share of other comprehensive income of joint ventures and associates
- - 3 - - 3 - 3
Effect of hyperinflationary economies - - - - 41 41 - 41
Deferred tax associated with hyperinflationary economies - - - - (10) (10) - (10)
Items that are or may be subsequently reclassified to profit or loss - - (31) 120 31 120 8 128
Other comprehensive income - - (31) 120 79 168 8 176
Total comprehensive income - - (31) 120 599 688 17 705
Inventory cash flow hedge movements
Amounts transferred to cost of inventory - - - 3 - 3 - 3
Total inventory cash flow hedge movements - - - 3 - 3 - 3
Transactions with owners
Dividends paid to equity shareholders 5 - - - - (508) (508) - (508)
Net movement in own shares held - - - - (13) (13) - (13)
Share buyback (1) 1 - - (361) (361) - (361)
Dividends paid to non-controlling interests - - - - - - (6) (6)
Total transactions with owners (1) 1 - - (882) (882) (6) (888)
Attributable to equity shareholders
Non-controlling
Issued Other Translation Hedging Retained Total
capital reserves reserve reserve earnings Total interests equity
Balance as at 1 March 2025 41 178 (414) 78 11,112 10,995 103 11,098
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 loss 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 they 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
24 weeks ended 52 weeks ended 24 weeks ended 52 weeks ended
28 February 24 weeks ended 13 September 28 February 24 weeks ended 13 September
2026 1 March 2025 2025 2026 1 March 2025 2025
£m £m £m £m £m £m
Operating segments
Retail 4,657 4,472 9,489 471 540 1,126
Grocery 2,072 2,089 4,125 179 227 478
Ingredients 1,004 1,031 2,041 112 120 257
Sugar 971 1,031 2,054 (27) 8 (2)
Agriculture 757 819 1,616 6 12 25
Central - - (46) (46) (110)
9,461 9,442 19,325 695 861 1,774
Business disposed and
closed
Sugar 9 67 134 (4) (26) (40)
9,470 9,509 19,459 691 835 1,734
Geographical information
United Kingdom 3,271 3,361 6,909 226 293 605
Europe and Africa 3,837 3,674 7,660 279 320 644
The Americas 1,216 1,234 2,449 149 200 399
Asia Pacific 1,137 1,173 2,307 41 48 126
9,461 9,442 19,325 695 861 1,774
Business disposed and
closed
United Kingdom 5 36 73 (4) (24) (37)
Europe and Africa 4 28 56 - - (1)
The Americas - 3 1 - - -
Asia Pacific - - 4 - (2) (2)
9,470 9,509 19,459 691 835 1,734
Operating segments for the 24 weeks ended 28 February 2026
Retail Grocery Ingredients Sugar Agriculture Central Total
£m £m £m £m £m £m £m
Revenue from continuing businesses 4,657 2,083 1,091 1,002 758 (130) 9,461
Internal revenue - (11) (87) (31) (1) 130 -
External revenue from continuing businesses 4,657 2,072 1,004 971 757 - 9,461
Business disposed and closed - - - 9 - - 9
Revenue from external customers 4,657 2,072 1,004 980 757 - 9,470
Operating profit/(loss) 469 169 107 (39) 6 (55) 657
Adjusted operating profit/(loss) before joint
ventures and associates 471 160 93 (30) 12 (46) 660
Share of adjusted profit/(loss) after tax from
joint ventures and associates - 19 19 3 (6) - 35
Business disposed and closed - - - (4) - - (4)
Adjusted operating profit/(loss) 471 179 112 (31) 6 (46) 691
Finance income 19 19
Finance expense (46) (1) (1) (1) - (19) (68)
Other financial income 21 21
Adjusted profit/(loss) before taxation 425 178 111 (32) 6 (25) 663
Profits less losses on disposal of non-current assets
(2) - - - 5 - 3
Amortisation of non-operating intangibles - (10) (5) - (5) - (20)
Transaction costs - - - - - (9) (9)
Exceptional items - - - (8) - - (8)
Profits less losses on sale and closure of businesses
- - 1 2 - - 3
Profit/(loss) before taxation 423 168 107 (38) 6 (34) 632
Taxation (188) (188)
Profit/(loss) for the period 423 168 107 (38) 6 (222) 444
Segment assets (excluding joint ventures and
associates) 7,537 3,005 2,320 2,849 614 157 16,482
Investments in joint ventures and associates - 58 133 54 147 - 392
Segment assets 7,537 3,063 2,453 2,903 761 157 16,874
Cash and cash equivalents 712 712
Income tax 76 76
Deferred tax assets 202 202
Employee benefits assets 1,762 1,762
Segment liabilities (4,129) (742) (385) (526) (183) (250) (6,215)
Loans and overdrafts (709) (709)
Income tax (153) (153)
Deferred tax liabilities (858) (858)
Employee benefits liabilities (73) (73)
Net assets 3,408 2,321 2,068 2,377 578 866 11,618
Non-current asset additions 352 60 102 149 14 23 700
Depreciation and non-cash lease adjustments
(301) (49) (38) (50) (10) (3) (451)
Amortisation (17) (15) (7) (3) (6) - (48)
Operating segments for the 24 weeks ended 1 March 2025
Retail Grocery Ingredients Sugar Agriculture Central Total
£m £m £m £m £m £m £m
Revenue from continuing businesses 4,472 2,098 1,126 1,066 823 (143) 9,442
Internal revenue - (9) (95) (35) (4) 143 -
External revenue from continuing businesses 4,472 2,089 1,031 1,031 819 - 9,442
Business disposed and closed - - - 67 - - 67
Revenue from external customers 4,472 2,089 1,031 1,098 819 - 9,509
Operating profit/(loss) 537 219 115 (122) 7 (46) 710
Adjusted operating profit/(loss) before joint ventures and associates
540 193 103 5 13 (46) 808
Share of adjusted profit/(loss) after tax from joint ventures and associates
- 34 17 3 (1) - 53
Business disposed and closed - - - (26) - - (26)
Adjusted operating profit/(loss) 540 227 120 (18) 12 (46) 835
Finance income 27 27
Finance expense (45) (1) (1) (1) - (16) (64)
Other financial income 20 20
Adjusted profit/(loss) before taxation 495 226 119 (19) 12 (15) 818
Profits less losses on disposal of non-current assets
(3) 1 - - - - (2)
Amortisation of non-operating intangibles - (9) (5) - (5) - (19)
Exceptional items - - - (104) - - (104)
Profits less losses on sale and closure of businesses
- - - (1) - - (1)
Profit/(loss) before taxation 492 218 114 (124) 7 (15) 692
Taxation (163) (163)
Profit/(loss) for the period 492 218 114 (124) 7 (178) 529
Segment assets (excluding joint ventures and associates)
7,317 2,833 2,156 2,501 664 119 15,590
Investments in joint ventures and associates - 44 128 57 152 - 381
Segment assets 7,317 2,877 2,284 2,558 816 119 15,971
Cash and cash equivalents 758 758
Current asset investments 66 66
Income tax 79 79
Deferred tax assets 237 237
Employee benefits assets 1,572 1,572
Segment liabilities (4,003) (687) (402) (513) (194) (201) (6,000)
Loans and overdrafts (623) (623)
Income tax (134) (134)
Deferred tax liabilities (753) (753)
Employee benefits liabilities (75) (75)
Net assets 3,314 2,190 1,882 2,045 622 1,045 11,098
Non-current asset additions 331 102 95 171 19 5 723
Depreciation and non-cash lease adjustments (281) (50) (38) (45) (14) (2) (430)
Amortisation (18) (10) (6) (2) (6) - (42)
Operating segments for the 52 weeks ended 13 September 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 external customers 9,489 4,125 2,041 2,054 1,616 - 19,325
Business 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
1,126 409 226 (8) 25 (110) 1,668
Share of adjusted profit after tax from joint ventures and associates
- 69 31 6 - - 106
Business 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
Profits less losses 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)
Profits less losses 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)
Geographical information for the 24 weeks ended 28 February 2026
Europe and
United Kingdom Africa The Americas Asia Pacific Total
£m £m £m £m £m
Revenue from external customers 3,276 3,841 1,216 1,137 9,470
Segment assets 5,737 7,299 1,873 1,965 16,874
Non-current asset additions 200 263 158 79 700
Depreciation (including of right-of-use assets) (152) (215) (55) (29) (451)
Amortisation (11) (32) (3) (2) (48)
Transaction costs (9) - - - (9)
Exceptional items - (8) - - (8)
Geographical information for the 24 weeks ended 1 March 2025
United Kingdom Europe and Africa The Americas Asia Pacific Total
£m £m £m £m £m
Revenue from external customers 3,397 3,702 1,237 1,173 9,509
Segment assets 5,813 6,665 1,902 1,591 15,971
Non-current asset additions 219 336 93 75 723
Depreciation (including of right-of-use assets) (152) (200) (50) (28) (430)
Amortisation (8) (30) (2) (2) (42)
Exceptional items (3) (101) - - (104)
Geographical information for the 52 weeks ended 13 September 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 of 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)
The Group's operations in the following countries met the criteria for
separate disclosure:
Revenue Non-current assets
24 weeks ended 52 weeks ended 24 weeks ended 52 weeks ended
28 February 24 weeks ended 13 September 28 February 24 weeks ended 13 September
2026 1 March 2025 2025 2026 1 March 2025 2025
£m £m £m £m £m £m
Australia 701 713 1,414 824 673 690
Spain 901 948 1,846 644 621 643
United States 823 858 1,694 1,097 1,012 980
2. Exceptional items
2026
At half year, there was a non-cash exceptional impairment charge of £8m in
our Sugar Division. Our Spanish Sugar business, Azucarera, has continued to be
impacted by poor trading performance and a further impairment charge was
recognised on newly acquired property, plant and equipment.
2025
At half year, there was a non-cash exceptional impairment charge of £104m in
our Sugar Division. Our Spanish Sugar business, Azucarera, has incurred
operating losses in the first half of the financial year due to the worsening
trading performance of the business. The Vivergo business has continued to be
impacted by the volatility in margin and a further impairment charge was also
recognised for on newly acquired property, plant and equipment.
3. Income tax expense
52 weeks ended
24 weeks ended 24 weeks ended 13 September
28 February 2026 1 March 2025 2025
£m £m £m
Current tax expense
UK - corporation tax at 25% (2025 - 25%) 9 11 36
Overseas - corporation tax 129 161 318
UK - (over)/under provided in prior periods (12) - 5
Overseas - under/(over) provided in prior periods 7 (3) (16)
133 169 343
Deferred tax (credit)/expense
UK - deferred tax 11 18 30
Overseas - deferred tax 44 (25) (6)
UK - over provided in prior periods - - (3)
Overseas - under provided in prior periods - 1 4
55 (6) 25
Total income tax expense in the income statement 188 163 368
Reconciliation of effective tax rate
Profit before taxation 632 692 1,413
Less share of profit after taxation from joint ventures and associates (33) (51) (103)
Profit before taxation excluding share of profit after taxation from joint 599 641 1,310
ventures and associates
Nominal tax charge at UK corporation tax rate of 25% (2025 - 25%) 150 160 327
Effect of higher and lower tax rates on overseas earnings (29) (38) (72)
Effect of changes in tax rates on the income statement 2 1 (2)
Expenses not deductible for tax purposes 37 44 95
Disposal of assets covered by tax exemptions or unrecognised capital losses - (3) (1)
Deferred tax not recognised 33 1 31
Adjustments in respect of prior periods (5) (2) (10)
Total income tax expense in the income statement 188 163 368
Other comprehensive income or equity
Deferred tax associated with defined benefit schemes 22 15 37
Current tax associated with share-based payments - - (1)
Deferred tax associated with movements in cash flow hedging position 20 32 (11)
Deferred tax associated with movements in foreign exchange - 1 (1)
Current tax associated with movements in foreign exchange 1 - 1
Deferred tax associated with hyperinflationary economies - 10 -
43 58 25
The adjusted effective tax rate of 24.5% (2025 H1 - 24.1%) is the estimated
weighted average annual tax rate based on full year projections and was
applied to profit before adjusting items for the 24 weeks ended 28 February
2026. The tax impact of adjusting items was calculated on an item-by-item
basis.
There is a £30m deferred tax charge in the period relating to the
derecognition of deferred tax assets in Azucarera. When assessing the
recoverability of the deferred tax assets in Azucarera, the probability of
future taxable profits has been assessed, including the future taxable profits
available within the consolidated Spanish tax group of which Azucarera is a
part. Following the announced demerger of the Group's Retail business from its
food business, our Primark Spain business will no longer be part of the
consolidated Spanish tax group, and this has accordingly reduced the forecast
taxable profits available to support the recognition of our deferred tax
assets in Azucarera, resulting a deferred tax charge.
Pillar Two legislation applies in certain jurisdictions in which the Group
operates, including the UK. The current tax expense in respect of Pillar Two
for the 24 weeks ended 28 February 2026 is £5m (H1 2025 - £7m).
The Group recognises 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. The Group's board-approved tax strategy is based
on seven tax principles embedded in the Group's financial and non financial
processes and controls. This tax strategy is available in the Policies section
of the Group's website.
4. Earnings per share
52 weeks ended
24 weeks ended 24 weeks ended 13 September
28 February 2026 1 March 2025 2025
pence per share pence per share Pence per share
Adjusted earnings per share 70.7 83.6 174.9
Disposal of non-current assets 0.4 (0.3) (1.2)
Sale and closure of businesses 0.5 (0.1) (4.4)
Acquired inventory fair value adjustments (0.1) (0.1) (0.1)
Transaction costs (1.3) - (1.8)
Exceptional items (1.1) (14.2) (26.0)
Tax effect on above adjustments and exceptional tax (4.3) 4.0 4.3
Amortisation of non-operating intangibles (2.8) (2.6) (5.5)
Tax credit on non-operating intangibles amortisation 0.7 0.7 1.4
Earnings per ordinary share 62.7 71.0 141.6
5. Dividends
24 weeks ended 52 weeks ended 24 weeks ended 52 weeks ended
28 February 24 weeks ended 13 September 28 February 24 weeks ended 13 September
2026 1 March 2025 2025 2026 1 March 2025 2025
pence per share pence per share pence per share £m £m £m
2024 final and special - 69.3 69.3 - 508 508
2025 interim - - 20.7 - - 148
2025 final 42.3 - - 301 - -
42.3 69.3 90.0 301 508 656
The 2025 final dividend of 42.3p approved by shareholders on 12 December 2025
totalled £301m when paid on 9 January 2026. The 2026 interim dividend of
20.7p per share, totalling an estimated cost of £145m will be paid on 3 July
2026 to shareholders on the register on 29 May 2026.
6 Acquisitions and disposals
Acquisitions
No material or significant businesses were acquired in the first half for the
financial years 2026 and 2025.
Disposals
No material or significant businesses were disposed of in the first half for
the financial years 2026 and 2025.
7. Analysis of net debt
New leases, non-cash items and
At 13 September transfers Exchange adjustments At 28 February
2025 Cash flow £m £m 2026
£m £m £m
Short-term loans (127) 32 46 (2) (51)
Long-term loans (409) (26) (46) (19) (500)
Lease liabilities (3,019) 174 (154) (31) (3,030)
Total liabilities from financing activities (3,555) 180 (154) (52) (3,581)
Cash at bank and in hand, cash equivalents
and overdrafts 926 (364) - (8) 554
Net debt including lease liabilities (2,629) (184) (154) (60) (3,027)
Add back: lease liabilities 3,019 3,030
Net cash before lease liabilities 390 3
24 weeks ended 24 weeks ended 52 weeks ended
Reconciliation of cash and short term debt to balance sheet 28 February 2026 1 March 2025 13 September
£m £m 2025
£m
Cash and cash equivalents 712 758 1,057
Overdrafts (158) (132) (131)
Cash at bank and in hand, cash equivalents and overdrafts 554 626 926
Current loans and overdrafts (209) (169) (258)
Add back: overdrafts 158 132 131
Short-term loans (51) (37) (127)
24 weeks ended 24 weeks ended 52 weeks ended
Roll forward of the liabilities associated with interest paid 28 February 2026 1 March 2025 13 September
£m £m 2025
£m
Opening balance (25) (25) (25)
Interest expense (68) (64) (132)
Interest paid 67 66 143
Interest capitalised (5) (5) (11)
Closing balance (31) (28) (25)
8. Related parties
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation and are not disclosed in this
note. Full details of the Group's other related party relationships,
transactions and balances are given in the Group's financial statements for
the 52 weeks ended 13 September 2025. There have been no material changes in
these relationships in the 24 weeks ended 28 February 2026 or up to the date
of this report. No related party transactions have taken place in the first 24
weeks of the current financial year that have materially affected the
financial position or the performance of the Group during that period.
9. Subsequent events
Following the announcement in November 2025, ABF in consultation with ABF's
largest shareholder, Wittington Investments, has conducted a strategic review
of the Group structure with a view to maximising long term value. As a result
of this review, a decision by the Board has been made to proceed with a
demerger of its Retail business from its Food business. The process will begin
with immediate effect and ABF will provide further updates on the progress of
the demerger as and when appropriate.
10. Defined benefit pension schemes
Employee benefits assets primarily comprise the accounting surplus of the
Group's UK defined benefit scheme. At the end of the period, the surplus in
the UK was £1,683m (H1 2025 - £1,506m; 2025 full year - £1,586m). The
increase from the end of the last financial year reflects an increase in the
plan assets due to higher returns, partly offset by an increase in the pension
liabilities due to a reduction in corporate bond yields and an increase in the
long-term expected inflation assumption.
11. Basis of preparation
Associated British Foods plc ('the Company') is a company domiciled in the
United Kingdom. The condensed consolidated interim financial statements of the
Company for the 24 weeks ended 28 February 2026 comprise those of the Company
and its subsidiaries (together referred to as 'the Group') and the Group's
interests in joint ventures and associates.
The consolidated financial statements of the Group for the 52 weeks ended 13
September 2025 are available upon request from the Company's registered office
at 10 Grosvenor Street, London, W1K 4QY or at www.abf.co.uk
(http://www.abf.co.uk/) .
The condensed consolidated interim financial statements have been prepared in
accordance with UK-adopted IAS 34 Interim Financial Reporting. They do not
include all of the information required for full annual financial statements
and should be read in conjunction with the consolidated financial statements
for the 52 weeks ended 13 September 2025, which have been prepared in
accordance with UK-adopted international accounting standards.
After making enquiries, the directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence to the end
of the 2027 financial year. For this reason, they continue to adopt the going
concern basis in preparing the consolidated interim financial statements.
The directors have reviewed a detailed cash flow forecast to the end of the
2027 financial year. Having reviewed this forecast and having applied a
downside sensitivity analysis and performed a reverse stress test, the
directors consider it a remote possibility that the financial headroom could
be exhausted.
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 net debt including lease
liabilities to adjusted EBITDA to be well under 1.5x. At the end of this
financial period, the financial leverage ratio was 1.2x and the Group had
total cash, cash equivalents and current asset investments of £0.7bn and
undrawn committed Revolving Credit Facilities of £1.8bn.
In February 2025, S&P Global Ratings reaffirmed their assignment to the
Group of an 'A' grade long-term issuer credit rating. The Group's funding
basis is supported by the existing £400m public bond due in 2034. Furthermore
the Group's committed Revolving Credit Facility is free of performance
covenants and matures in 2029, after a further one year extension was made in
April 2024. Group funding is not subject to financial 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. 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 the adverse scenario in which
inflationary costs are not fully recovered, high levels of volatility in key
commodity prices without price adjustments, adverse movement to the cash
conversion cycle within the Group and server IT outages leading to extended
periods 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 37% 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 long period, management could
take substantial mitigating actions, such as reviewing pricing, 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.
Following the Group's announcement of the demerger of the Group's Retail
business from its Food business, the Directors have considered the impact of
going concern based on its current structure and available finance. The
Directors believe that the Group will have sufficient liquidity to meet the
going concern basis under both scenarios.
The Group's business activities, together with the factors likely to affect
its future development, performance and position are set out in the Operating
Review. Note 27 on pages 197 to 208 of the 2025 Annual Report provides details
of the Group's policy on managing its financial and commodity risks.
The 24 week period for the condensed consolidated interim financial statements
of the Company means that the second half of the year is usually a 28-week
period, and the two halves of the reporting year are therefore not of equal
length. For the Retail segment, Christmas, falling in the first half of the
year, is a particularly important trading period. For the Sugar segment, the
balance sheet, and working capital in particular, is strongly influenced by
seasonal growth patterns for both sugar beet and sugar cane, which vary
significantly in the markets in which the Group operates.
The condensed consolidated interim financial statements are unaudited but have
been subject to an independent review by the auditor and were approved by the
board of directors on 20 April 2026. They do not constitute statutory
financial statements as defined in section 434 of the Companies Act 2006. The
comparative figures for the 52 weeks ended 13 September 2025 have been
abridged from the Group's 2025 financial statements and are not the Company's
statutory financial statements for that period. Those financial statements
have been reported on by the Company's auditor for that period and delivered
to the Registrar of Companies. The report of the auditor was unqualified, did
not include a reference to any matters to which the auditor drew attention by
way of emphasis without qualifying their report and did not contain a
statement under section 498(2) or (3) of the Companies Act 2006.
This Interim Results Announcement has been prepared solely to provide
additional information to shareholders as a body, to assess the Group's
strategies and the potential for those strategies to succeed. This Interim
Results Announcement should not be relied upon by any other party or for any
other purpose.
12. Significant accounting policies
Except where detailed otherwise, the accounting policies applied by the Group
in these condensed consolidated interim financial statements are substantially
the same as those applied by the Group in its consolidated financial
statements for the 52 weeks ended 13 September 2025 including for derivatives
and current biological assets, which are recognised in the balance sheet at
fair value and fair value less costs to sell, respectively. The methodology
for selecting assumptions underpinning the fair value calculations has not
changed since 13 September 2025.
New accounting standards
The following accounting standards, amendments and clarifications were adopted
in the period with no significant impact:
- Lack of Exchangeability (Amendments to IAS 21)
Accounting standards not yet applicable
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:
- Amendments to the Classification and Measurement of Financial
Instruments (Amendments to IFRS 9 and IFRS 7), effective 2027 financial year
- Annual Improvements to IFRS Accounting Standards - Volume 11,
effective 2027 financial year
- Contracts Referencing Nature-dependent Electricity (Amendments
to IFRS 9 and IFRS 7), effective 2027 financial year
- IFRS 18 Presentation and Disclosure in Financial Statements,
effective 2028 financial year
- IFRS 19 Subsidiaries without Public Accountability: Disclosures,
effective 2028 financial year
13. Accounting estimates and judgements
The preparation of interim financial statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates. In preparing the
condensed consolidated interim financial statements, the significant
judgements made by management in applying the Group's accounting policies and
the key sources of estimation uncertainty were the same as those applied to
the consolidated financial statements for the 52 weeks ended 13 September
2025.
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.
Closest equivalent IFRS measure
APM 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) margin No direct equivalent Adjusted operating (profit) margin is Adjusted operating profit as a See note A
percentage of revenue.
Adjusted operating profit Operating profit Adjusted operating profit is stated before amortisation of non-operating A reconciliation of this measure is provided on the face of the condensed
intangibles, transaction costs, amortisation of fair value adjustments made to consolidated income statement and by operating segment in note 1
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 profit before tax Profit before Adjusted profit before tax is stated before amortisation of non-operating A reconciliation of this measure is provided on the face of the condensed
intangibles, transaction costs, amortisation of fair value adjustments made to consolidated income statement and by operating segment in note 1
tax 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 Reconciliation of this measure is provided in note 4
amortisation of non-operating intangibles, transaction costs, amortisation of
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.
Closest equivalent IFRS measure
APM Definition/purpose Reconciliation/calculation
Exceptional No direct Exceptional items are items of income and expenditure which are Exceptional items are
items equivalent significant and unusual in nature and are considered of such included on the face of
significance that they require separate disclosure on the face of the the condensed
income statement. consolidated income
statement with further
detail provided in note 2
Constant Revenue and Constant currency measures are derived by translating the relevant See note B
currency Adjusted prior year figures at current year average exchange rates, except for
operating profit countries where CPI has escalated to extreme levels, in which case
(non-IFRS) actual exchange rates are used. There are currently four countries
measure where the Group has operations in this position - Argentina, Malawi,
Turkiye and Venezuela.
Effective tax No direct This measure is the tax charge for the year expressed as a Whilst the effective tax
rate equivalent percentage of profit before tax. rate is not disclosed, a
reconciliation of the tax
charge on profit before
tax at the UK corporation
tax rate to the actual tax
charge is provided in note
3
Adjusted No direct This measure is the tax charge for the year excluding tax on adjusting The tax impact of
effective tax equivalent items expressed as a percentage of Adjusted profit before tax. reconciling items
rate between profit before tax
and adjusted profit before
tax is shown in note 4
Dividend cover No direct Dividend cover is the ratio of Adjusted earnings per share to See note C
equivalent dividends per share relating to the period.
Capital No direct Capital expenditure is a measure of investment in non-current assets See note D
expenditure equivalent in existing businesses. It comprises cash outflows from the purchase
of property, plant and equipment and intangibles.
Gross No direct Gross investment is a measure of investment in non-current assets See note E
investment equivalent in existing businesses and acquisition of 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 No direct This measure comprises cash, cash equivalents and overdrafts, A reconciliation of this
before lease equivalent current asset investments and loans. measure is shown in note
liabilities 7
Net cash/debt No direct This measure comprises cash, cash equivalents and overdrafts, A reconciliation of this
including lease equivalent current asset investments, loans and lease liabilities. measure is shown in note
liabilities 7
Adjusted Adjusted Adjusted EBITDA is stated before depreciation, amortisation and See note F
EBITDA operating profit impairments charged to Adjusted operating profit.
(non-IFRS)
measure
Financial No direct Financial leverage is the ratio of net cash/debt including lease See note F
leverage ratio equivalent liabilities to Adjusted EBITDA.
Closest equivalent IFRS measure
APM Definition/purpose Reconciliation/calculation
Free cash flow No direct This measure represents the cash that the Group generates from its See note G
equivalent operations after maintaining and investing in its capital assets.
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 £2m (2025 H1 - £2m)
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 equivalent Total liquidity comprises cash, cash equivalents and current asset See note H
investments, less non-qualifying borrowings and an estimate of inaccessible
cash, plus the qualifying credit facilities.
Cash and cash equivalents are set out in note 7.
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 7.
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 28 February 2026, this comprised the RCF.
(Average) No direct Capital employed is derived from the management balance sheet Consistent with the
capital employed equivalent and does not reconcile directly to the statutory balance sheet. All elements definition given
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 No direct This measure expresses Adjusted operating profit as a percentage of Consistent with the
(average) capital employed equivalent Average capital employed. definition given
(Average) No direct Working capital is derived from the management balance sheet and Consistent with the
working capital equivalent does not reconcile directly to the statutory balance sheet. All elements are definition given
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) No direct This measure expresses (Average) working capital as a percentage of Consistent with the
working capital as a percentage of revenue equivalent revenue. definition given
Note A
Central and disposed business
£m
Retail Grocery Ingredients Sugar Agriculture Total
£m £m £m £m £m £m
24 weeks ended 28 February 2026
External revenue from continuing businesses 4,657 2,072 1,004 971 757 9 9,470
Adjusted operating profit 471 179 112 (27) 6 (50) 691
Adjusted operating margin % 10.1% 8.6% 11.2% (2.8)% 0.8% 7.3%
24 weeks ended 1 March 2025
External revenue from continuing businesses 4,472 2,089 1,031 1,031 819 67 9,509
Adjusted operating profit 540 227 120 8 12 (72) 835
Adjusted operating margin % 12.1% 10.9% 11.6% 0.8% 1.5% 8.8%
Note B
Central and disposed business
£m
Retail Grocery Ingredients Sugar Agriculture Total
£m £m £m £m £m £m
24 weeks ended 28 February 2026
External revenue from continuing businesses at actual rates
4,657 2,072 1,004 971 757 9 9,470
24 weeks ended 1 March 2025
External revenue from continuing businesses at actual rates
4,472 2,089 1,031 1,031 819 67 9,509
Impact of foreign exchange 106 (17) (10) 37 (3) - 113
External revenue from continuing businesses at constant currency
4,578 2,072 1,021 1,068 816 67 9,622
% change at constant currency +2% in line (2)% (9)% (7)% (2)%
Central and disposed business
£m
Retail Grocery Ingredients Sugar Agriculture Total
£m £m £m £m £m £m
24 weeks ended 28 February 2026
Adjusted operating profit at actual rates 471 179 112 (27) 6 (50) 691
24 weeks ended 1 March 2025
Adjusted operating profit at actual rates 540 227 120 8 12 (72) 835
Impact of foreign exchange 9 (3) - 3 1 - 10
Adjusted operating profit at constant currency
549 224 120 11 13 (72) 845
% change at constant currency (14)% (20)% (7)% (345)% (54)% (18)%
Note C
52 weeks ended
24 weeks ended 24 weeks ended 13 September
28 February 2026 1 March 2025 2025
Adjusted earnings per share (in pence) 70.7 83.6 174.9
Dividend relating to the period (in pence) 20.7 20.7 63.0
Dividend cover 3 4 3
Note D
52 weeks ended
24 weeks ended 24 weeks ended 13 September
28 February 2026 1 March 2025 2025
From the cash flow statement £m £m £m
Purchase of property, plant and equipment 464 490 1,099
Purchase of intangibles 53 63 135
Capital expenditure 517 553 1,234
Note E
52 weeks ended
24 weeks ended 24 weeks ended 13 September
28 February 2026 1 March 2025 2025
From the cash flow statement £m £m £m
Purchase of property, plant and equipment 464 490 1,099
Purchase of intangibles 53 63 135
Purchase of subsidiaries - 1 4
Purchase of other investments 17 3 6
Gross investment 534 557 1,244
Note F
52 weeks ended
24 weeks ended 24 weeks ended 13 September
28 February 2026 1 March 2025 2025
£m £m £m
Adjusted operating profit 691 835 1,734
Charged to adjusted operating profit:
Depreciation of property, plant and equipment and investment properties 300 294 588
Amortisation of operating intangibles 30 25 58
Depreciation of right-of-use assets and non-cash lease adjustments 151 136 305
Adjusted EBITDA 1,172 1,290 2,685
Net debt including lease liabilities (3,027) (2,772) (2,629)
Financial leverage ratio (based on the last 12 months rolling adjusted EBITDA) 1.2x 1.0x 1.0x
Note G
24 weeks ended 52 weeks ended
24 weeks ended 1 March 2025 13 September
28 February 2026 £m 2025
£m £m
Adjusted EBITDA (see note F) 1,172 1,290 2,685
Repayment of lease liabilities net of incentives received (165) (158) (328)
Working capital (227) (318) (95)
Capital expenditure (see note D) (517) (553) (1,234)
Purchase of subsidiaries - (1) (4)
Sale and closure of subsidiaries (5) (1) (4)
Net interest paid (48) (39) (94)
Income taxes paid (130) (147) (298)
Share of adjusted profit after tax from joint ventures and associates (35) (53) (106)
Dividends received from joint ventures and associates 46 54 108
Other (20) (47) 18
Free cash flow 71 27 648
Note H
24 weeks ended 52 weeks ended
24 weeks ended 1 March 2025 13 September
28 February 2026 £m 2025
£m £m
Cash and cash equivalents 712 758 1,057
Current asset investments - 66 -
Current loans and overdrafts (209) (169) (258)
Non-qualifying non-current borrowings* (107) (62) (16)
Estimated inaccessible cash (36) (38) (53)
Qualifying credit facilities 1,800 1,500 1,500
Total liquidity 2,160 2,055 2,230
*At 28 February 2026, 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
This report contains forward-looking statements. These have been made by the
directors in good faith based on the information available to them up to the
time of their approval of this report. The directors can give no assurance
that these expectations will prove to have been correct. Due to the inherent
uncertainties, including both economic and business risk factors, underlying
such forward-looking information, actual results may differ materially from
those expressed or implied by these forward-looking statements. The directors
undertake no obligation to update any forward-looking statements whether as a
result of new information, future events or otherwise.
Responsibility statement
The Interim Results Announcement complies with the Disclosure and Transparency
Rules ('the DTR') of the UK's Financial Conduct Authority in respect of the
requirement to produce a half-yearly financial report.
The directors confirm that to the best of their knowledge:
- this financial information has been prepared in accordance with
UK-adopted International Accounting Standard 34 Interim Financial Reporting;
- this Interim Results Announcement includes a fair review of the
important events during the first half and their impact on the financial
information, and a description of the principal risks and uncertainties for
the remaining half of the year as required by DTR 4.2.7R; and
- this Interim Results Announcement includes a fair review of
material related party transactions and changes therein since the last annual
report as required by DTR 4.2.8R.
On behalf of the board
Michael McLintock George Weston Joana Edwards
Chairman Chief Executive Chief Financial Officer
20 April 2026
Independent review report to Associated British Foods plc
Conclusion
We have been engaged by the Company to review the condensed set of financial
statements in the Interim Results Announcement for the 24 weeks ended 28
February 2026 which comprises the condensed consolidated income statement, the
condensed consolidated statement of comprehensive income, the condensed
consolidated balance sheet, the condensed consolidated cash flow statement,
the condensed consolidated statement of changes in equity and the related
explanatory notes. We have read the other information contained in the Interim
Results Announcement and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the
condensed set of financial statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed consolidated interim financial statements in the
Interim Results Announcement for the 24 weeks ended 28 February 2026 are not
prepared, in all material respects, in accordance with UK-adopted
International Accounting Standard 34 and the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements 2410 (UK) "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" (ISRE) issued by the Financial
Reporting Council. A review of interim financial information consists of
making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 11, the annual financial statements of the Group are
prepared in accordance with UK adopted international accounting standards. The
condensed set of financial statements included in this Interim Results
Announcement has been prepared in accordance with UK adopted International
Accounting Standard 34, Interim Financial Reporting.
Conclusions relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
this ISRE, however future events or conditions may cause the entity to cease
to continue as a going concern..
Responsibilities of the directors
The directors are responsible for preparing the Interim Results Announcement
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the Interim Results Announcement, the directors are responsible
for assessing the Company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the Company or to cease operations, or have no realistic alternative
but to do so.
Auditor's responsibilities for the review of the financial information
In reviewing the Interim Results Announcement, we are responsible for
expressing to the Company a conclusion on the condensed set of financial
statements in the Interim Results Announcement. Our conclusion, including our
Conclusions relating to going concern, are based on procedures that are less
extensive than audit procedures, as described in the Basis for conclusion
paragraph of this report.
Use of our report
This report is made solely to the company in accordance with guidance
contained in International Standard on Review Engagements 2410 (UK) "Review of
Interim Financial Information Performed by the Independent Auditor of the
Entity" issued by the Financial Reporting Council. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the company, for our work, for this report, or for the conclusions we
have formed.
Ernst & Young LLP Reading
20 April 2026
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