AB Foods profit falls 14% as Primark profit declines

Associated British Foods reported a 14% decline in adjusted pretax profit to £1.46 billion for the year ended September 12, as lower profits at Primark weighed on the group. The company said it remains on track to separate the retailer from its food businesses by December 2027. Primark’s adjusted operating profit fell about 11% for the year, despite a 4% rise in sales to £9.8 billion. Sales at stores open for at least a year, a measure that excludes the effect of new locations, declined 2.6%. The company attributed the like-for-like fall to a challenging consumer environment across most of its markets. Primark said it reduced prices on hundreds of products in July to strengthen its value proposition, and that the initial response was encouraging. The retailer reported improved like-for-like performance in the UK after its pricing efforts. It said trading in continental Europe remained at an earlier stage of recovery, with weak consumer confidence affecting results. The company reported a 4.7% fall in like-for-like sales in continental Europe, which represented 47% of Primark sales. New store openings helped lift total sales. Primark opened 33 stores during the year, including...