London, June 15, 2026, 16:03 BST
- Associated British Foods plc traded around 1,954p in late London dealing, up slightly on the day, with the shares still down nearly 8% for 2026. MarketScreener
- Investors are still weighing Primark’s finance-chief appointment before the planned split of ABF’s retail and food businesses. Reuters
- The next major catalyst is ABF’s scheduled trading update on July 1. ABF Corporate
Associated British Foods plc shares edged higher on Monday, with MarketScreener’s Cboe Europe estimate showing the stock at 1,954.25p, up 0.42%, while its delayed London Stock Exchange quote showed 1,959.50p, up 0.69%. The five-day move was stronger, at just over 5%, although the stock remained down about 8% since the start of the year. Around the same afternoon, the FTSE 100 — the main index of large UK-listed companies — was quoted down 0.37% at 10,433.44, leaving ABF ahead of the wider blue-chip market at that point. Stocks usually rise when investors become more willing to pay for future earnings, cash flow or corporate change; they fall when those assumptions weaken. MarketScreener
The latest company-specific development investors were digesting was Primark’s appointment of Lucy Slinger as chief financial officer ahead of the planned separation from ABF. Reuters reported that Slinger joins from Ingka Group, the largest IKEA retailer, and previously spent more than two decades at Shell. Primark chief executive Eoin Tonge said she was arriving at “such an important moment for the business” as the retailer prepares for “a standalone future.” That matters for ABF’s share price because Primark is the group’s most visible growth asset, and stronger finance leadership may help investors judge how credible the spin-off plan is. Reuters
The bigger story remains the demerger. In April, ABF said it would separate Primark from its food businesses, with existing shareholders expected to own shares in both companies after completion. A demerger means one listed group is split into separately traded companies, usually to make each business easier to value. ABF said Primark had 486 stores across 19 markets and annual revenue of about £9.5 billion, while the food business had annual revenue of about £9.8 billion. The plan is intended to complete before the end of 2027, subject to approvals and tax clearances, with ABF saying both businesses are expected to qualify for FTSE 100 status. ABF Corporate
The bear case has not disappeared. In the first half of fiscal 2026, ABF’s revenue fell 2% at constant currency to £9.47 billion, adjusted operating profit fell 18% to £691 million, and adjusted earnings per share fell 15%. Adjusted operating profit is profit from the business after excluding selected items that management does not treat as normal operating performance. Primark’s UK like-for-like sales — sales from comparable stores rather than new openings — rose 1.3%, but Europe like-for-like sales fell 5.6%. Sugar also weighed on the group, posting a £27 million adjusted operating loss. Those details matter because weaker sales or margins can push investors to cut profit forecasts, which is one reason a stock can fall even when the long-term story is intact. ABF Corporate
The July 1 trading update is now the next test. Investors will be watching whether Primark’s European sales have stabilised, whether UK momentum has held up, and whether the group can keep retail margins around the level management previously guided. The market will also look for any fresh signs on Sugar, where ABF had already warned there was no clear evidence yet of a European recovery in 2027. Any update on the Primark separation timetable would also be important, because the demerger is the main reason some investors may be willing to look past near-term earnings pressure. ABF Corporate
At around 1,950p–1,960p, ABF looks fair to risky rather than clearly cheap today. MarketScreener’s analyst consensus showed an “underperform” rating, with 18 analysts and an average target price of £18.68, about 4% below the last close; a target price is an analyst’s estimate of fair value, not a guarantee. The bull case is that Primark’s standalone profile could unlock value, while ABF’s food assets become easier to understand. The bear case is that Primark’s sales softness, Sugar losses and lower group earnings leave little room for disappointment before the July update. MarketScreener
