Associated British Foods (LSE:ABF) reported adjusted operating profit fell 18% in the 24 weeks ended 28 February, with group revenue down 2% versus the prior year.
Adjusted earnings per share fell 15% to 70.7p. The group invested £534m in capacity, capability and technology and generated free cash flow of £71m, reflecting normal seasonal working capital outflow. Exceptional items were £8m (H1 2025: £104m). Balance sheet leverage was 1.2x at 28 February and the interim dividend was maintained at 20.7p. ABF has completed £187m of share buybacks to 17 April, with a further £63m planned.
Primark sales rose 2% with new stores contributing about 4% of growth; like‑for‑like sales were down 2.7%. UK like‑for‑like was up 1.3% and gained market share, continental Europe like‑for‑like fell 5.6% and the US grew 12%. Primark margin was 10.1%. Grocery adjusted operating profit declined 20%, Ingredients was down 7% and Sugar reported an operating loss of £27m.
"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," George Weston, Chief Executive of Associated British Foods, said:
The board has decided to proceed with a demerger of Primark from the Food business; on completion shareholders will hold shares in both listed entities.
