Primark owner Associated British Foods is considering spinning off the discount retailer, a move that was welcomed by market watchers. Shares initially rose on the news before dropping back, in line with European markets. Chairman Michael McLintock said the board was undertaking the review given the scale that Primark had reached and the need for a better understanding of the food business. Below are a selection of analysts' comments.

AB Foods' Potential Primark and Food Split a Major Positive

0752 GMT - The proposed split of Associated British Foods' Primark and Food businesses is a major positive for investors, RBC analysts Richard Chamberlain and Manjari Dhar write in a note. Overall results for its 2025 fiscal year results were a mixed bag, with adjusted profit before taxes slightly better than expected, but weaker sales. Its outlook is cautious for food in particular, but the potential split will likely be well received by investors because it should narrow the company's implied conglomerate discount--which reflects the difference between the market value of a company and the sum of its different businesses. However, there could be a disadvantage in the lack of food cash flow to invest in the expansion of Primark, the analysts write. (aimee.look@wsj.com)

AB Foods' Potential Primark and Food Split a Big First Step

0832 GMT - The proposed split of Associated British Foods' Primark and Food businesses is a landmark first step, Barclays analysts say in a research note. The separation is a sensible move given Primark's size and that Foods is undervalued within ABF, the analysts say. While there are hurdles ahead, such as taxes, the proposed division is logical and a positive surprise, they add. ABF shares trade 2.2% higher at 2,331 pence. (maitane.sardon@wsj.com)

AB Foods Could Get Value Boost From Primark and Food Split

0848 GMT - The proposed separation of Associated British Foods' Primark and Food businesses is a positive surprise that could boost the company's value, Shore Capital analysts say in a research note. Separating Primark from Food could improve the stock's valuation, as each business could perform better independently, the analysts say. AB Foods' full-year update reflects a mixed performance across divisions, with weak results in the agriculture-and-sugar business but solid progress in grocery and ingredients, the analysts add. Shares trade 1.4% lower at 22.42 pounds. (maitane.sardon@wsj.com)

AB Foods' Results Were Disappointing But Expected

0903 GMT - Associated British Foods' results were weak but expected, with the main headline news being the strategic review that could lead to the separation of the Primark and Food businesses, Interactive Investor's Richard Hunter writes in a note. The Sugar business remains weak, posting a 40 million-pound loss versus previous estimates of a 75 million-pound profit, he says. Meanwhile, Primark's results were mixed amid a challenging retail climate, Hunter says. While the shares have recovered by some 65% since their multiyear low in October 2022, the price still significantly trails previous highs, the analyst adds. Shares are down 0.8% at 2,261 pence. (maitane.sardon@wsj.com)

(END) Dow Jones Newswires

November 04, 2025 04:34 ET (09:34 GMT)

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