Primark owner Associated British Foods PLC (LSE:ABF) said it is carrying out a review of the group structure that could result in the clothing retail chain being separated from its food businesses.
Alongside final results from the FTSE 100 group, chairman Michael McLintock said he is leading the review, which is in consultation with Wittington, the investment vehicle of the founding Weston family.
"Given the scale that Primark has now attained and the need for better understanding of our Food businesses, the board has been undertaking an in-depth review of the future shape of ABF to assess whether a separation of the Primark and Food businesses would be a better structure in the years ahead."
ABF also reported full-year profits that fell less than expected despite slightly disappointing revenues, with a further £250 million share buyback announced and a full-year dividend of 63p, down from 90p a year ago.
Adjusted operating profit came in at £1.73 billion for the 52 weeks ended 13 September, down 13% compared to a year ago but ahead of consensus estimates of £1.68 billion. Adjusted earnings per share were 174.9p, also beating forecasts.
Group revenue of £19.46 billion was down 3% year-on-year and missed expectations of £19.75 billion. Free cash flow dropped to £648 million from £1.4 billion a year ago, while total net debt rose to £2.63 billion from £2.0 billion.
Primark sales rose 1% to £9.5 billion, with adjusted operating profit up 2% to £1.1 billion. The company said UK like-for-like sales improved in the second half, helped by store rollouts and a renewed focus on value and product offering.
Chief executive George Weston said it was "a year of intense strategic and operational activity" and that the board is "confident in the group outlook for 2026 although much depends on the consumer environment".