Primark owner ABF could split fashion business from food division | Primark

Primark’s owner is considering splitting the fashion retailer from its food division, which includes Twinings and Kingsmill, in a “challenging external environment”.

Associated British Foods (ABF) said it was considering splitting Primark from its food arm, which includes its sugar manufacturing and grocery brands, “in a bid to maximize long-term value”.

The group has launched a strategic review, carried out with the assistance of consultancy firm Rothschild & Co, with the support of Wittington Investments, whose largest shareholder is the Weston family.

The family, which owns 59% of ABF, was “committed to retaining a majority stake in both businesses”, the company said. The family was ranked sixth on the 2025 Sunday Times Rich List, with a fortune worth nearly £18bn.

ABF, valued as a group at £16bn, said no decision had been taken and that the board would inform and update “as soon as possible”.

Earlier this year Primark CEO Paul Marchant resigned following a woman’s accusation about his behavior towards her in a social situation.

The group also announced a drop in sales and profits on Tuesday as its sugar and agribusinesses faced higher costs and closed its Vivergo bioethanol plant.

The ABF said pre-tax profits fell by more than a quarter to £1.4 billion as revenues fell 3% to £19.4 billion in the year to September 13.

The sugar business suffered a £205m decline, with revenues falling 12% to £2bn following the decision to close Vivergo, as well as rising costs and falling sugar prices.

Primark’s sales rose 1% to £9.5bn. A 3% decline in sales at established stores in the UK and Ireland was offset by 20% growth in the US and 2% growth in mainland Europe, where Primark opened new stores.

The company said sales were negatively impacted by “cautious consumer sentiment and the absence of a seasonal buying catalyst in mild fall weather.” [last year]”.

He added that shopping activity within Primark’s customer base was particularly weak as the spending power of those on lower incomes was affected by high energy and food bills.

Primark has more than 470 stores in 18 countries, 187 of which are in the UK.

ABF closed Vivergo after the UK government signed a duty-free agreement on the product with the US. It also completes the merger of its bakery business, which includes the Kingsmill brand, with rival Hovis.

ABF Chief Executive George Weston said: “This has been a year of intense strategic and operational activity within ABF. Many of our businesses have delivered strong financial results while dealing with challenging external conditions.

“Looking ahead, we remain confident in the group’s outlook for 2026, although much depends on the consumer environment, which is particularly unpredictable at the moment.”

He said he fully supported the review, adding that ABF’s food business was “less understood” than Primark but had a “highly attractive portfolio, deep global expertise and huge potential”.

“Primark has an incredibly strong international brand, a strong customer proposition and significant growth opportunities,” he said.