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 reporting a drop in annual profits.
The company announced a review of its structure alongside its full-year financial results, which showed an adjusted pre-tax profit of £1.7bn for the year to September 13, a 13% decline compared to the prior year.
Sales at Primark grew by 1% year-on-year to £9.5bn, with stronger trading in the second half of the year offsetting a weaker first half.
AB Foods told investors that no decision has been made, but the review may result in separating Primark from the food business.
Author's summary: AB Foods considers spinning off Primark amid profit drop.