Associated British Foods (ABF) said trading had been “resilient” during the quarter despite “challenging” retail conditions, as it continues preparations to separate Primark from its food businesses by the end of 2027.
In a trading update published on Wednesday, the group reported a 3% increase in revenue to £5.3 billion for the quarter ended 20 June 2026, compared with the same period last year.
ABF added that it remains on track to deliver adjusted pre-tax profit below last year’s level.
Its retail division, primarily comprising Primark, recorded a 4% increase in revenue to £2.92 billion. However, like-for-like sales declined by 2.2%, with growth continuing to be supported by new store openings.
Chief Executive George Weston said the business has strengthened its offering through “new product launches, a sharper focus on price and increased investment in marketing”.
In the UK, Primark reported a 1% increase in total sales, while like-for-like sales were flat.
The retailer said it experienced a “strong start” to its spring/summer season in March before trading weakened in April and May. It attributed this to the impact of the conflict in the Middle East on consumer sentiment, alongside unseasonable weather. Trading improved in June as weather conditions became more favourable.
ABF said it continues to expect Primark’s adjusted operating profit margin to be approximately 10% for the full year, broadly in line with the 10.1% reported in the first half.
The company also reiterated its expectation that the planned demerger of Primark from its food businesses will be completed by the end of calendar year 2027, subject to shareholder approval, regulatory approvals and tax clearances.
ABF first announced the proposed separation in April, saying the move would maximise long-term shareholder value. Following the demerger, both Primark and the remaining food business are expected to remain listed on the London Stock Exchange as FTSE 100 companies.
The update follows a series of senior appointments at Primark. The retailer recently named former Calvin Klein Vice President of Europe Design Keiron Birch as Director of Womenswear Design and appointed Lucy Slinger, previously Deputy Chief Financial Officer at IKEA franchisee Ingka Group, as its new Chief Financial Officer.
