Associated British Foods lifts earnings outlook as Primark plans UK home delivery

Retail & Consumer Food & Drink Written by: Ephrem Joseph 08:43 Thu 10 Sep 2026 --> Edited by: Ian Lyall Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Ephrem Joseph Ephrem began his journalistic journey at Proactive in June 2021. With a strong academic background in Information Technology, his expertise particularly lies in the field of Cyber Security, Management Information Systems and Computer Forensics. Before joining Proactive, Ephrem worked as a researcher and lecturer at a number of leading universities, including the University of Portsmouth's Institute of Criminal Justice Studies, the University of Winchester’s Institute of Policing, and Jain... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Associated British Foods PLC ( LSE:ABF ) View Price & Profile Associated British Foods shares slump 10% as Primark weakness and sugar losses weigh - UPDATE Last updated: 08:43 10 Sep 2026 BST, First published: 07:22 10 Sep 2026 BST Associated British Foods PLC (LSE:ABF) shares slumped more than 10% to 1,808.5p in early trading after weaker Primark sales in continental Europe and a deteriorating outlook for its Sugar division overshadowed plans to launch home delivery in Great Britain. Primark expects fourth-quarter sales to rise around 2%, although like-for-like sales are forecast to decline around 3%. UK sales are expected to increase around 1%, with like-for-like sales broadly flat. Continental Europe proved notably weaker, with sales forecast to fall 1% and like-for-like sales down around 4.3%, while US sales growth slowed to around 11%. Jefferies characterised the update as a “muted end to the year” for Primark, pointing to underwhelming European sales and more challenging US trading. The broker has a 1,650p price target on ABF and expects weaker Sugar performance to put downward pressure on consensus forecasts for 2027. It also highlighted that Primark’s expected operating margin of approximately 10% excludes anticipated demerger-related dis-synergies. ABF expects Sugar to record an adjusted operating loss towards the upper end of its previous £25 million to £60 million range in 2026, widening to between £70 million and £170 million in 2027. At group level, adjusted operating profit remains broadly in line with previous expectations, while adjusted earnings per share is forecast to come in ahead. Primark will meanwhile introduce home delivery in Great Britain, supported by an automated fulfilment facility acquired in Sheffield. ---UPDATES TO ADD SHARE PRICE & BROKER COMMENTS--- Continue reading