AB Foods Stock Slumps 11% as Primark Warns on Sales and Sugar Losses

Associated British Foods (LON: ABF) stock plummeted more than 11% on Thursday after its Primark division warned of weaker sales and sugar losses.

The company's Sugar business is expected to report an adjusted operating loss towards the upper end of its previous guidance range, which is £25 million to £60 million for fiscal 2026. The outlook becomes even more challenging in 2027 with an expected adjusted operating loss of between £70 million and £170 million.

Primark's like-for-like sales are forecasted to decline 3% in the fourth quarter ending September 12, following a 2.2% fall in the previous quarter. The full-year like-for-like sales are expected to fall by 2.6%, while total sales are predicted to increase 2% in both the fourth quarter and the full year.

AB Foods' Chief Executive George Weston said that the company's priority focus areas, the UK and womenswear, continued to outperform other markets and categories. However, trading in continental Europe remained challenging.