Primark to split from food business despite warning of Iran war impact
Summary
Primark’s owner, Associated British Foods (ABF), plans to separate Primark from its food businesses like Twinings and Kingsmill by the end of 2027. The company reported lower sales and profits partly due to weak consumer spending, which may be affected further by the Middle East conflict.Key Facts
- ABF will split Primark from its food business, called FoodCo, by the end of 2027.
- Group sales dropped 2% to £9.46 billion in the six months ending February 28.
- Pre-tax profits fell 9% to £632 million in the same period.
- ABF’s sugar business performed worse than expected and is forecasted to lose money this year.
- Primark’s sales declined 2.7% globally, with UK sales rising but European sales falling 5.6%.
- The company said the Middle East conflict is affecting consumer confidence and spending.
- George Weston, ABF’s CEO, will lead the food business after the split.
- Eoin Tonge will stay as CEO of Primark after the separation.
- ABF believes the split will help both businesses grow and improve shareholder returns.
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