Associated British Foods (ABF) is eyeing a possible separation of its Primark retail arm from its Food businesses, as it revealed its group profits slipped in 2025.

The review, conducted in consultation with its majority shareholder Wittington Investments, comes as the group reported in today’s trading update (4 November 2025) a 12% drop in adjusted operating profit to £1.73bn and a 1% fall in group revenue to £19.5bn for the year to 13 September 2025.

While Primark continues to expand internationally, ABF said the move aimed to “maximise long-term value” and provide “better understanding” of both its retail and food operations.

ABF, which operates a portfolio that includes food brands such as Kingsmill, newly acquired Hovis, Twinings, Jordans and Ryvita, said that Rothschild & Co is advising the board on the review, which could lead to a formal separation of the two businesses.

Chairman Michael McLintock said the board was exploring whether a split “would be a better structure in the years ahead”, noting that Primark’s scale and the underappreciated strength of the Food portfolio had prompted the reassessment.

“ABF has delivered good long-term returns in its current structure, but we regularly assess the best way to support both Primark and our Food businesses,” he added.

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Chief executive George Weston described the group’s dual structure as “two great businesses but one strong culture”, adding that Primark’s brand strength and global growth opportunities were now complemented by a “unique and exceptional Food business” spanning grocery, sugar, ingredients and agriculture.

The review overshadowed a mixed set of annual results where Pimark grew sales by 1% to £9.5bn and lifted operating profit by 2% to £1.1bn, supported by new stores in Europe and the US and an improved second half in the UK.

Likewise, its grocery division fared well, with its international brands delivering good sales growth, offset by US oils and Allied Bakeries, as expected, and its Ingredients arm posting strong growth in adjusted operating profit

However, declining profits in ABF’s Sugar and Agriculture units weighed on the group total, with adjusted earnings per share falling 11% to 174.9p.

Looking ahead at its Grocery arm, ABF said it expects its international brands to deliver “good growth in sales and profit, underpinned by investment in marketing and product innovation, albeit offset by lower volumes and profit in our US oils business.”

The company added that it will update the market on the structural review “as soon as practicable”.