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AB Foods Launches Review of Primark Split, Weighs Separate London Listings

The review follows weaker results, signaling Wittington’s plan to keep majority stakes if separate listings proceed.

Overview

  • ABF has begun a strategic review with Rothschild to evaluate separating Primark from its food, sugar and ingredients businesses, including a possible demerger and dual London listings.
  • Wittington Investments, the Weston family vehicle and 59% shareholder, backs the process and intends to maintain majority ownership of both entities if a split happens, with no decision yet taken.
  • Management expects to conclude the review before interim results in April, and says any separation, if pursued, could take up to roughly 18 months to execute.
  • Full-year results show revenue down about 3% to £19.5bn and pre-tax profit down 26% to £1.4bn, with the sugar arm reporting a £205m operating loss and the Vivergo bioethanol plant closed.
  • Primark sales rose 1% to £9.5bn, with declines in the UK and Ireland offset by 20% growth in the US and ongoing store expansion, while ABF shares fell roughly 1% to 2.5% in morning trading.