The owner of Primark is considering splitting the fashion retailer from its food division, which contains Twinings and Kingsmill, amid a “challenging external backdrop”.
Associated British Foods (ABF) said it was considering splitting off Primark from its food arm, which includes sugar production and grocery brands, “with a view to maximising long-term value”.
The group has launched a strategic review, carried out with the help of the advisory firm Rothschild & Co, with the backing of its largest shareholder, the Weston family’s Wittington Investments.
The company said the family, which owns 59% of ABF, remained “committed to maintaining majority ownership of both businesses”. The family sat in sixth position on the 2025 Sunday Times Rich List, with its wealth valued at nearly £18bn.
ABF, which is valued at £16bn as a group, said no decision had been taken and the board would provide and update “as soon as practicable”.
Earlier this year, the Primark chief executive, Paul Marchant, resigned after an allegation made by a woman about his behaviour towards her in a social situation.
The group also announced a fall in sales and profits on Tuesday as its sugar and agriculture businesses faced higher costs and it closed its Vivergo bioethanol plant.
ABF said pre-tax profits had slumped by more than a quarter to £1.4bn as revenues slipped by 3% to £19.4bn in the year to 13 September.
Its sugar business fell £205m into the red as its revenues slid 12% to £2bn after the decision to close Vivergo as well as higher costs and lower prices for its sugar.
Sales at Primark rose 1% to £9.5bn. A 3% fall in sales at established UK and Irish stores was offset by 20% growth in the US and 2% growth in mainland Europe, where Primark is opening new stores.
The company said sales were hit by “cautious consumer sentiment and the lack of a seasonal purchasing catalyst during mild autumn weather [last year]”.
It added that shopping activity within elements of Primark’s customer base was particularly weak as the spending power of those on low incomes was hit by higher energy and food bills.
Primark has more than 470 stores across 18 countries, including 187 shops in the UK.
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ABF closed Vivergo after the UK government signed a duty free deal on the product with the US. It is also finalising the merger of its bakeries business, which includes the Kingsmill brand, with rival Hovis.
George Weston, the chief executive of ABF, said: “This was a year of intense strategic and operational activity within ABF. Most of our businesses delivered robust financial results, while navigating a challenging external backdrop.
“Looking ahead, we are confident in the group outlook for 2026 although much depends on the consumer environment, which is particularly unpredictable at the moment.”
He said he fully backed the review, adding that ABF’s food business was “less well understood” than Primark but had “a highly attractive portfolio, deep global expertise and much potential”.
“Primark has an incredibly strong international brand, a powerful customer proposition, and substantial growth opportunities,” he said.