DAVY VIEW

Associated British Foods’ (ABF) year-end trading update reads more cautious relative to its interim outlook. In a challenged consumer environment, Primark sales were softer than expected with like-for-like (LFL) sales declining 3% (Davy: -1.7%) and space growth bringing total sales growth to 1%. Overall trading for the Food businesses in the second half was in line with management expectations. On first look, see modest downside to our constant currency operating profit forecast for FY25. The absence of commentary for 2026 is notable.