Shares in Associated British Foods PLC (LSE:ABF) plunged 9% despite an easing in the like-for-like sales decline at its Primark retail chain, while its sugar arm saw a significant fall in sales and profitability, as expected.
In a statement ahead of its final results in November, the FTSE 100 company said Primark's like-for-like sales are expected to be around 2% below last year, with a decline of 2.4% in the third quarter softening to a fall of around 2% in the fourth.
For the full year in 2025, total sales, including new store space, grew around 1%, with both Q3 and Q4 expanding at 1%.
At its half-year results, the full-year target for Primark was "low-single digit sales growth".
Sales in Europe were said to be softer due to weaker consumer demand, offsetting sales in the US that grew 21% in Q3 and around 24% in Q4.
The troublesome Sugar segment is expected to see an adjusted operating loss for the full year of close to £40 million, as previously guided, after the decline in sales and profitability in the UK and Spain.
Excluding the now-closed Vivergo bioethanol plant, full-year adjusted operating profit for the division is expected to be close to breakeven, although restructuring in Spain and impairment charges are expected to cost close to £200 million.
Grocery sales were flat, as Twinings and Ovaltine saw good growth, while Allied Bakeries reported lower sales and an operating loss.
Ingredients sales were flat, with adjusted operating profit expected to be slightly ahead of prior guidance.
In Agriculture, H2 sales rose by around 1%, but adjusted operating profit is expected to be significantly lower due to reduced contribution from joint venture Frontier and one-off costs.
Chief Executive George Weston said: "Against a backdrop of continued volatility in 2026, we will start to see the benefit from our recent actions and continued investment."
The shares fell 9.4% to 2,029p in early trading.
** Update: Adds share price details **