AB Foods stock falls after Primark outlook and sugar losses weigh on sentiment

Published on 09/11/2026 at 20:04 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

AB Foods stock dropped 7.92 percent to 1,860.0 pence on September 10, 2026 after a trading update flagged weaker Primark like-for-like sales and deeper sugar losses. The group still expects full-year adjusted EPS to come in above expectations while keeping an operating margin of about 10 percent.

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) closed at 1,860.0 pence on the London Stock Exchange on September 10, 2026, down 7.92 percent from the previous close of 2,020.0 pence as investors reacted to a fresh trading update for Primark and the Sugar and Grocery divisions.

Primark outlook drives latest share-price move

According to Il Sole 24 Ore on September 11, 2026, estimates from the AB Foods group for Primark point to sales growth of 2 percent for the 2026 financial year, driven primarily by store expansion and a new franchising model, while like-for-like sales are expected to fall by about 2.6 percent.

In the fourth quarter of the 2026 financial year, Primark sales are forecast to rise by 2 percent, with new stores and franchising contributing around 5 percentage points, implying an underlying like-for-like decline of roughly 3 percent in what remains a challenging consumer environment, especially in continental Europe, as reported by Yahoo Finance on September 11, 2026.

Despite the softer like-for-like trends, the group continues to target an adjusted operating margin of about 10 percent for Primark in the 2026 financial year, a level highlighted both by Yahoo Finance and Il Sole 24 Ore, underscoring that profitability is expected to remain broadly stable even as volumes come under pressure.

Recent half-year figures and EPS guidance

For the first half of the 2026 financial year, Associated British Foods reported revenue of about GBP 9.5 billion with adjusted operating profit down 18 percent at constant currency, and adjusted EPS decreasing 15 percent year over year, according to an earnings call summary on Investing.com covering H1 2026.

Based on the latest earnings release for the quarter ending February 28, 2026, the company generated quarterly revenue of GBP 9.47 billion and net profit of GBP 445 million, compared with revenue of GBP 9.51 billion and net profit of GBP 520 million in the prior-year quarter, as outlined by The Globe and Mail; this reflects an approximate 0.4 percent decline in revenue and around a 14.4 percent drop in net profit year on year.

UOB Kay Hian noted on September 11, 2026 that Associated British Foods now expects full-year adjusted EPS to come in above prior expectations, even as Primark like-for-like sales are set to fall about 3 percent in the fourth quarter and trading in continental Europe remains difficult.

In addition to margin and EPS guidance, the group has flagged deeper losses in its sugar operations, with commentary cited by This is Money on September 10, 2026 indicating substantial sugar losses of up to GBP 60 million for the current year and potentially up to GBP 170 million in the 2026-27 period.

Analyst reactions and price targets

Analyst houses have begun to adjust their stance on AB Foods stock following the September 2026 trading update. In a report released on September 11, 2026, The Globe and Mail reported that Shore Capital reiterated a Hold rating on Associated British Foods with a price target of 2,010 pence, effectively signaling limited upside from the post-update level around 1,860 pence.

Deutsche Bank and Panmure Liberum have both cut their target prices for Associated British Foods after the group issued its trading update, as noted by Yahoo Finance on September 11, 2026, underscoring that the weaker Primark outlook and sugar losses are being factored into valuation assumptions.

Market data compiled by MarketScreener on September 10, 2026 show that AB Foods stock fell 7.92 percent over one day and 8.42 percent over the past week, with the average target price around GBP 18.46, close to but slightly below the latest close of GBP 18.60.

Trading levels, valuation and key dates

Per price data on Investing.com, AB Foods stock traded at 1,860.0 pence on September 10, 2026, against a day range of 1,777.0 to 1,870.0 pence and within a 52-week range from 1,729.5 to 2,351.0 pence, leaving the shares close to their 52-week low and more than 20 percent below the 52-week high.

The same overview shows a price-to-earnings ratio of 12.89 for Associated British Foods and a dividend yield of 3.34 percent, suggesting that the share is valued at a moderate earnings multiple while offering income, even as the current year-to-date performance stands at a decline of 12.55 percent according to the performance table on MarketScreener.

Looking ahead, Associated British Foods is scheduled to release its next earnings report on November 3, 2026, covering annual results for the 52 weeks to September 12, 2026, as indicated both by Yahoo Finance and by the event calendar on Investing.com.

AB Foods stock near 52-week low

As of the close on September 10, 2026, AB Foods stock is trading at 1,860.0 pence on the London Stock Exchange, only around 7.5 percent above its 52-week low of 1,729.5 pence and roughly 20.9 percent below the 52-week high of 2,351.0 pence, a positioning that highlights how the recent Primark outlook and expected sugar losses have weighed on sentiment even as management signals confidence in delivering full-year adjusted EPS above expectations.