Associated British Foods shares fell more than 9% after its latest trading update showed another weak quarter for Primark in continental Europe alongside a sharply deteriorating outlook for the group's sugar operations. Primark's like-for-like sales are expected to decline 3% in the fourth quarter ending September 12, with the UK and Ireland edging 0.4% higher while continental Europe falls 4.3%, though total Primark sales should still rise around 2% for the full year as new stores and franchise expansion add growth. The U.S. looks healthier, with fourth-quarter sales rising around 11% as Primark expanded to 47 stores, and franchise operations in the Gulf also performed strongly, with further expansion planned into Saudi Arabia and Mexico. Against that backdrop, Primark confirmed one of the biggest strategic changes in its history by announcing plans to offer home delivery in Great Britain, acquiring Debenhams Group's automated Sheffield fulfillment facility for £90 million to expand beyond click and collect into direct delivery for the first time, with no launch date yet given. Sugar gave ABF shareholders an even bigger reason to sell, as the division is now expected to produce an adjusted operating loss toward the upper end of the existing £25 million to £60 million range this year, before potentially deteriorating to between £70 million and £170 million in 2027, while Grocery profit is also expected to come in slightly below previous guidance after weaker Twinings demand. ABF is also preparing to demerge Primark from the Food business before the end of 2027.
Associated British Foods PLCSugar division now expected to post an adjusted operating loss toward the upper end of £25m-£60m, potentially worsening to £70m-£170m in 2027
NVIDIA Corporation