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Associated British Foods
(LSE:ABF)
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Rating:63Neutral
Price Target:
2,049.00 p
â–¼(-0.73% Downside)
Action:Reiterated
Date:10/22/26
The score is primarily constrained by weakening recent financial performance and a cautious near-term outlook from the latest earnings call (lower expected FY profit/EPS and Sugar losses). These are partly offset by a solid balance sheet, reasonable valuation with an attractive dividend yield, and mixed but not overextended technical momentum.
Positive Factors
Diversified business model
ABF’s combination of consumer staples, food ingredients, agriculture and value fashion reduces reliance on any single market or product category. This breadth can support resilience across different demand cycles while allowing scale benefits in procurement, manufacturing, distribution and customer relationships.
Negative Factors
Profit and earnings deterioration
The broad decline in operating profit and earnings indicates that current pressure extends beyond one isolated business line. Lower profitability can constrain internally funded investment, weaken returns on capital and reduce the group’s ability to convert revenue stability into durable earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
ABF’s combination of consumer staples, food ingredients, agriculture and value fashion reduces reliance on any single market or product category. This breadth can support resilience across different demand cycles while allowing scale benefits in procurement, manufacturing, distribution and customer relationships.
Read all positive factors
Associated British Foods (ABF) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£13.47B
Dividend Yield3.27%
Average Volume (3M)751.63K
Price to Earnings (P/E)14.4
Beta (1Y)0.72
Revenue Growth-2.16%
EPS Growth-24.87%
CountryUK
Employees138,000
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)1.34
Shares Outstanding702,947,200
10 Day Avg. Volume712,387
30 Day Avg. Volume751,634
Financial Highlights & Ratios
PEG Ratio-0.58
Price to Book (P/B)1.43
Price to Sales (P/S)0.81
P/FCF Ratio13.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,775.50Price Target Upside-13.98% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering10
EPS Forecast (FY)1.48
Revenue Forecast (FY)£20.00B
Associated British Foods Business Overview & Revenue Model
Company Description
Associated British Foods plc (ABF) is a global diversified entity, primarily engaged in the food, ingredient, and retail sectors. Its extensive operations are segmented into five distinct divisions: Grocery, Sugar, Agriculture, Ingredients, and Re...
How the Company Makes Money
ABF makes money through multiple operating segments that generate revenue by selling products and services to consumers, retailers, and industrial customers. (1) Primark (retail): Primark earns revenue primarily from selling clothing, footwear, ac...
Associated British Foods Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: clear operational progress at Primark (UK turnaround, digital traction, international roll-out) and continued investment and brand momentum in Foods, balanced against material near-term financial headwinds including an 18% drop in group adjusted operating profit, a revised full-year loss expectation for Sugar, Grocery profit declines and higher markdowns. The company emphasizes a strong balance sheet, active capital returns and multi-year transformation investments, but geopolitical cost pressures and recent consumer softening create uncertainty for the near term.Positive Updates
Group Revenue and Cash Flow Resilience
Group revenue of GBP 9.5bn (flat YoY at actual rates; -2% at constant currency) with free cash flow improving to GBP 71m (from GBP 27m prior year) aided by reduced Primark working capital and disciplined capital allocation.
Negative Updates
Group Profit and EPS Decline
Group adjusted operating profit down to GBP 691m, an 18% decline (constant currency) and adjusted EPS down 15%, reflecting weaker margins and lower profitability across key segments.
Read all updates
Q2-2026 Updates
Positive
Negative
Group Revenue and Cash Flow Resilience
Group revenue of GBP 9.5bn (flat YoY at actual rates; -2% at constant currency) with free cash flow improving to GBP 71m (from GBP 27m prior year) aided by reduced Primark working capital and disciplined capital allocation.
Read all positive updates
Company Guidance
Management reconfirmed 2026 guidance for the group (profit weighted to H2) with the exception of sugar: group H1 revenue was £9.5bn (flat; -2% at constant currency) and adjusted operating profit £691m (down 18% cc), adjusted EPS down c.15% (benefitting from £187m buybacks YTD and a planned £250m buyback for the year, £63m remaining); they expect adjusted operating profit and adjusted EPS for the full year to be below 2025. Primark guidance is unchanged with H1 sales £4.7bn (up 2%), like‑for‑like -2.7% (UK LFL +1.3%, Continental LFL -5.6%), H1 margin 10.1% and full‑year adjusted operating margin ~10%; store rollout contributed c.4% to growth, H1 opened 11 owned stores (38 in the US total), website traffic +37%, CRM +1m to >5m, and self‑checkout now in 250 stores. Grocery sales were £2.1bn with grocery profit down ~20% cc and grocery/ingredients guidance unchanged; Ingredients showed pockets of strong growth. Sugar H1 sales were down 9% with an adjusted operating loss of £27m and management now expects sugar to deliver an adjusted operating loss for the full year. CapEx was £534m in H1 (c.40% in Primark), full‑year CapEx c.£1.2bn; balance sheet/leverage: net debt including leases c.£3.0bn (H1 2025: c.£2.77bn), leverage 1.2x, total liquidity £2.2bn (committed facilities £1.8bn), free cash flow H1 £71m (vs £27m), and a pension surplus of £1.7bn; management said Middle‑East related cost impacts are manageable in 2026 given hedges but a sustained conflict could further dampen consumer spending.Associated British Foods Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.42B | 19.46B | 20.07B | 19.75B | 17.00B | 13.88B |
| Gross Profit | 1.50B | 1.63B | 1.84B | 1.34B | 3.78B | 3.13B |
| EBITDA | 2.45B | 2.43B | 2.86B | 2.29B | 2.15B | 1.77B |
| Net Income | 950.00M | 1.02B | 1.46B | 1.04B | 700.00M | 478.00M |
Balance Sheet | ||||||
| Total Assets | 19.63B | 19.29B | 19.01B | 18.84B | 19.77B | 16.89B |
| Cash, Cash Equivalents and Short-Term Investments | 712.00M | 1.06B | 1.66B | 1.46B | 2.13B | 2.31B |
| Total Debt | 3.74B | 3.69B | 3.68B | 3.72B | 3.89B | 3.69B |
| Total Liabilities | 8.01B | 8.11B | 7.74B | 7.65B | 8.22B | 6.89B |
| Stockholders Equity | 11.46B | 11.06B | 11.19B | 11.09B | 11.45B | 9.92B |
Cash Flow | ||||||
| Free Cash Flow | 1.18B | 1.15B | 1.79B | 614.00M | 380.00M | 742.00M |
| Operating Cash Flow | 2.25B | 2.25B | 2.87B | 1.69B | 1.15B | 1.37B |
| Investing Cash Flow | -1.12B | -878.00M | -1.33B | -1.06B | -854.00M | -656.00M |
| Financing Cash Flow | -1.16B | -1.65B | -1.57B | -1.16B | -563.00M | -373.00M |
Associated British Foods Technical Analysis
Positive
2064.00
Price Trends
1927.18
Positive
1958.94
Positive
1905.28
Positive
Market Momentum
13.64
Negative
64.02
Neutral
86.87
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ABF, the sentiment is Positive. The current price of 2064 is above the 20-day moving average (MA) of 1882.45, above the 50-day MA of 1927.18, and above the 200-day MA of 1905.28, indicating a bullish trend. The MACD of 13.64 indicates Negative momentum. The RSI at 64.02 is Neutral, neither overbought nor oversold. The STOCH value of 86.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ABF.
Associated British Foods Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | £1.75B | 13.24 | 9.74% | 1.65% | 2.31% | 9.04% | |
65 Neutral | £2.81B | 17.89 | 14.99% | 2.14% | 9.52% | 18.08% | |
63 Neutral | £13.47B | 14.38 | 8.44% | 3.27% | -2.16% | -24.87% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | £2.32B | 92.95 | 0.73% | 0.90% | 25.76% | -73.03% | |
59 Neutral | £2.50B | 25.41 | 6.17% | 3.51% | 15.55% | 42.40% |
* Consumer Defensive Sector Average
GB:ABF
Associated British Foods
1,927.00
-296.61
-13.34%
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GB:TATE
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Associated British Foods Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
ABF pushes Primark digital expansion and sugar restructuring as demerger plans advance
Positive
Sep 10, 2026
Associated British Foods reported resilient fourth-quarter trading, with group adjusted operating profit expected to be broadly in line with previous expectations and adjusted earnings per share set to come in ahead. The company is advancing a pla...
Regulatory Filings and Compliance
Associated British Foods Confirms Share Capital and Voting Rights Structure
Neutral
Aug 28, 2026
Associated British Foods has confirmed that it has 702,947,191 ordinary shares of 5 15/22 pence each admitted to trading, with every share carrying one vote at general meetings, and it holds no shares in treasury. The stated share count provides t...
Business Operations and StrategyStock Buyback
Associated British Foods Completes £250m Share Buyback Programme
Positive
Aug 14, 2026
Associated British Foods plc has completed the repurchase and cancellation of 68,358 ordinary shares on 14 August 2026, buying them from Barclays Capital Securities at an average price of roughly 2,063 pence per share across multiple trading venue...
Business Operations and StrategyStock Buyback
Associated British Foods Buys Back and Cancels 60,000 Shares
Positive
Aug 13, 2026
Associated British Foods has repurchased 60,000 of its ordinary shares on 13 August 2026 under its ongoing share buyback programme, paying an average price of about 2,062 pence per share across multiple trading venues. The company plans to cancel ...
Business Operations and StrategyStock Buyback
Associated British Foods Cancels 60,000 Shares in Ongoing Buyback
Positive
Aug 12, 2026
Associated British Foods said it has repurchased 60,000 ordinary shares on 12 August 2026 under its previously announced share buyback authority. The shares, acquired from Barclays Capital Securities at an average price of about 2,051.9 pence, wil...
Business Operations and StrategyStock Buyback
Associated British Foods Cancels 68,719 Shares Under Buyback Programme
Positive
Aug 11, 2026
Associated British Foods plc has executed another tranche of its share repurchase programme, buying 68,719 ordinary shares for cancellation on 11 August 2026. The purchases, carried out via Barclays Capital Securities across multiple venues includ...
Business Operations and StrategyStock Buyback
Associated British Foods Advances Share Buyback with 60,000-Share Cancellation
Positive
Aug 10, 2026
Associated British Foods plc has continued its previously announced share repurchase programme, buying 60,000 ordinary shares on 10 August 2026 through Barclays Capital Securities at an average price of about 2,106 pence per share. The company pla...
Business Operations and StrategyStock Buyback
Associated British Foods Cancels 60,000 Shares in Ongoing Buyback Programme
Positive
Aug 7, 2026
Associated British Foods has continued to execute its share repurchase programme, buying 60,000 ordinary shares on 7 August 2026 at an average price of about 2,121 pence per share through Barclays Capital Securities across several trading venues. ...
Business Operations and StrategyStock Buyback
Associated British Foods Cancels Nearly 59,000 Shares in Ongoing Buyback
Positive
Aug 6, 2026
Associated British Foods has repurchased 58,996 ordinary shares on 6 August 2026 as part of its ongoing share buyback programme authorised by shareholders earlier this year. The shares, bought at an average price of about 2,118 pence across multip...
Business Operations and StrategyStock Buyback
Associated British Foods Advances 2026 Share Buyback With 70,000-Share Purchase
Positive
Aug 5, 2026
Associated British Foods has continued its 2026 share repurchase programme, buying 70,000 ordinary shares on 5 August for an average price of 2,101.39 pence, with trades executed across multiple venues including the London Stock Exchange, Cboe, Tu...
Business Operations and StrategyStock Buyback
Associated British Foods Advances Share Buyback With 70,000-Share Cancellation
Positive
Aug 4, 2026
Associated British Foods plc has continued its shareholder-approved share repurchase programme, buying 70,000 ordinary shares on 4 August 2026 from Barclays Capital Securities at an average price of about 2,108 pence per share. The company intends...
Business Operations and StrategyStock Buyback
Associated British Foods Cancels 40,000 Shares in Ongoing Buyback
Positive
Aug 3, 2026
Associated British Foods has continued its share repurchase programme, buying 40,000 ordinary shares on 3 August 2026 at an average price of 2,121.8957 pence and arranging for their cancellation. The purchases, executed by Barclays Capital Securit...
Business Operations and StrategyStock Buyback
Associated British Foods Cancels 60,000 Shares in Ongoing Buyback
Positive
Jul 31, 2026
Associated British Foods has repurchased 60,000 of its ordinary shares for cancellation on 31 July 2026, under its previously announced share buyback authority. The shares, bought via Barclays Capital Securities across multiple trading venues at a...
Regulatory Filings and Compliance
Associated British Foods Confirms Total Voting Rights and Share Capital
Neutral
Jul 31, 2026
Associated British Foods plc reported that it has a total of 703,653,264 ordinary shares of 5 15/22 pence each admitted to trading, with every share carrying one vote at general meetings. The company confirmed that it holds no shares in treasury, ...
Business Operations and StrategyStock Buyback
Associated British Foods Continues Share Buyback With 30,000-Share Cancellation
Positive
Jul 30, 2026
Associated British Foods plc has continued its previously announced share repurchase programme with the buyback and planned cancellation of 30,000 ordinary shares on 30 July 2026. The shares, with an average purchase price of about 2,105.61 pence,...
Business Operations and StrategyStock Buyback
Associated British Foods Continues Share Buyback With 60,000-Share Purchase
Positive
Jul 29, 2026
Associated British Foods plc has continued its share repurchase programme, buying 60,000 ordinary shares on 29 July 2026 at an average price of 2,076.064 pence per share. The shares were acquired from Barclays Capital Securities across multiple tr...
Business Operations and StrategyStock Buyback
Associated British Foods Advances Share Buyback with Further Share Cancellation
Positive
Jul 28, 2026
Associated British Foods has continued its share repurchase programme, buying 119 ordinary shares on 28 July 2026 at an average price of 2,031 pence per share from Barclays Capital Securities via the London Stock Exchange. The shares, which will b...
Business Operations and StrategyStock Buyback
Associated British Foods Continues Share Buyback, Cancels 25,434 Shares
Positive
Jul 27, 2026
Associated British Foods has continued to execute its share repurchase strategy, buying back 25,434 ordinary shares on 27 July 2026 for cancellation. The purchases, conducted via Barclays Capital Securities across multiple venues including the Lon...
Business Operations and StrategyStock Buyback
Associated British Foods Continues Share Buyback with July Repurchase
Positive
Jul 24, 2026
Associated British Foods has repurchased 7,606 of its ordinary shares on 24 July 2026 under its ongoing share buyback authority, paying an average price of 1,976.3147 pence per share across multiple trading venues. The group intends to cancel thes...
Business Operations and StrategyStock Buyback
Associated British Foods Continues Share Buyback, Cancels 29,584 Shares
Positive
Jul 23, 2026
Associated British Foods has continued executing its previously announced share repurchase programme, buying back 29,584 ordinary shares on 23 July 2026 at an average price of about 1,972 pence each. The shares were acquired via multiple venues, i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.