AB Foods stock faces wider sugar losses before November results

Published on 09/28/2026 at 17:01 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

AB Foods stock was trading at GBp 1,858.50 on September 28, 2026, down 0.11 percent. FY27 Sugar losses are guided at GBP 70 million to GBP 170 million.

Lebensmittelfabrik mit Getreidefeldern, Symbolbild Associated British Foods plc GB0006731235 — Associated British Foods plc GB0006731235 zeigt fotorealistisch eine moderne Lebensmittelfabrik mit Verpackungslinie und Getreidefeldern, Illustration mit AI erstellt.

AB Foods stock (ISIN GB0006731235) was trading at GBp 1,858.50 on the London Stock Exchange on September 28, 2026, down 0.11 percent from the previous close. The central issue is the contrast between better-than-expected adjusted earnings per share and a sharply wider Sugar loss outlook.

Guidance improves for earnings

In its September 10, 2026 trading update, Associated British Foods said FY26 adjusted operating profit should be broadly in line with its previous expectations, while adjusted earnings per share should be ahead of them. That combination gives the group a more supportive earnings signal despite pressure in several businesses.

Primark remains mixed. The company expects FY26 total sales growth of 2.00 percent, but like-for-like sales are guided down 2.60 percent, with continental Europe expected to fall 4.70 percent on the same measure.

Sugar creates the main risk

The sharper counterweight comes from Sugar. AB Foods guides to an adjusted operating loss toward the higher end of the GBP 25 million to GBP 60 million FY26 range, followed by a GBP 70 million to GBP 170 million loss range in FY27, according to the September 10 update.

The midpoint of the FY27 range is GBP 120 million, compared with the GBP 60 million midpoint of the prior FY26 range. That implies a GBP 60 million deterioration at the midpoint, driven by European sugar prices, gas costs, production conditions in Africa and weather risks.

Broker target stays below the quote

Kepler Cheuvreux downgraded AB Foods to Hold from Buy on September 16, 2026, and cut its price target to GBp 1,900.00 from GBp 2,100.00, as AskTraders reported. The revised target is 2.23 percent above the September 28 price, leaving the broker view close to the market quotation.

A broader analyst snapshot places the average 12-month target at GBp 1,804.70, or 2.89 percent below the intraday price, according to Investing.com. AB Foods is scheduled to publish its annual results for the 52 weeks ended September 12, 2026, on November 3, 2026.

AB Foods stock remains below its yearly high

At GBp 1,858.50 on September 28, 2026, the stock was 21.22 percent below its 52-week high of GBp 2,359.00 and above its low of GBp 1,559.00. Market capitalization stood at GBP 13.0 billion, with volume at 168,976 shares.