AB Foods Considers Spinning Off Primark
Associated British Foods (AB Foods), the owner of Primark, is considering spinning off the retail chain from its food business after a drop in annual profits.
The company announced a review of its structure alongside its full-year financial results, reporting an adjusted pre-tax profit of £1.7bn for the year to September 13, a 13% decline compared to the prior year.
- Sales across Primark grew by 1% year-on-year to £9.5bn.
- Stronger trading in the second half of the year balanced out a weaker first half.
AB Foods told investors that no decision had been made, but its review may result in the board deciding to separate Primark from the food business.
Author's summary: AB Foods considers spinning off Primark amid profit drop.