Primark and AB Foods are parting ways: can they do without each other?

Associated British Foods (ABF) is taking a major strategic step: the British conglomerate plans to spin off Primark. By the end of 2027, they are set to operate as two separate publicly traded companies, despite growing uncertainty. Is this the right time?

Less food and fewer clothes

The announcement coincides with disappointing half-year results. ABF saw group revenue fall by 2% to 9.46 billion British pounds (11.05 billion euros) in the six months ending in February. Pre-tax profit fell by 9% to 632 million British pounds (739 million euros). The sugar division, in particular, underperformed and is at risk of becoming loss-making this year. The food operations in the United States are also struggling with weak demand.