AB Foods warns of deeper sugar losses as Primark moves into home delivery

Associated British Foods ($ABF) outlined plans to introduce Primark home delivery in Great Britain while warning that its sugar business faces another difficult year. The retailer is investing £90 million in an automated Sheffield fulfillment facility. The delivery expansion accompanies preparations for Primark’s planned separation from the wider group, rather than an immediate change to its corporate ownership.

The financial update was less positive. Primark’s fourth-quarter like-for-like sales were expected to fall about 3%, with continental Europe remaining weak. AB Foods forecast an adjusted operating loss of £70–170 million for its sugar division in the following financial year, compared with a current-year loss expected toward the upper end of the £25–60 million range. The figures highlight that the delivery initiative is a longer-term growth project, not a solution to the group’s immediate earnings pressures.

Sources:

• Reuters — Primark home-delivery plans
• The Wall Street Journal — sugar-business loss outlook