Shares in Associated British Foods (LON: ABF) fell sharply on Thursday, dropping around 9.6% to roughly 1,825p, after the Primark owner published its fourth-quarter trading update.
The stock, which had closed at 2,020p, wiped out a significant chunk of its recent gains as investors focused on a deteriorating outlook for the Sugar division.
The group said full-year adjusted operating profit would be broadly in line with previous guidance and that adjusted earnings per share should come in ahead of expectations.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
However, Sugar is now expected to post an adjusted operating loss towards the higher end of its £25m to £60m range for 2026, with an initial 2027 view pointing to a much wider loss of £70m to £170m.
Onerous contract provisions, weak European sugar prices, higher gas costs and lower UK beet yield expectations were all cited as drags.
Primark, ABF’s largest business, delivered a steadier performance. Total sales are expected to grow around 2% for the year, though like-for-like sales fell around 2.6%, weighed down by continued weakness in continental Europe.
The retailer also announced it will begin offering home delivery in Great Britain, having acquired an automated fulfilment site in Sheffield, alongside continued growth in Click & Collect.
Grocery and Ingredients both posted growth in the quarter, though hot weather dented Twinings tea sales. The group reiterated that the demerger of its Retail arm from its Food businesses remains on track for completion in December 2027.
