# Associated British Foods (ABF.LSE)

Canonical: https://gigainvestors.com/s/ABF.LSE

Analysis as of: 2026-10-16T07:34:53.756Z. Financial observations: FY1996–FY2025.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 1,936.00 per share; close as of 2026-10-15.

Estimated value: low GBX 1,956.71 per share, central GBX 2,560.44 per share, high GBX 2,980.70 per share. Buy at or below the central value GBX 2,560.44 per share. Valuation as of 2026-10-16T07:34:53.756Z; scenarios are not confidence intervals.

Expected annual return: 12.3% at the stated quote. About 12.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.16×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.08×

- FY2017: 0.09×

- FY2018: 0.09×

- FY2019: 0.08×

- FY2020: 0.06×

- FY2021: 0.06×

- FY2022: 0.07×

- FY2023: 0.07×

- FY2024: 0.10×

- FY2025: 0.08×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 14.2pp below the typical margin (limit 4pp)

- ROIC, median of available years: 9.7%

- ROIC, second-lowest year: 5.5%

- Typical minus recent gross margin: 14.2 pp

- Typical gross margin (annual median): 22.5%

- Recent gross margin (lower of latest and 3-year median): 8.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.2%

- ROIC including acquisitions, ten-year median: 7.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 14.1%

- FY2018: 14.8%

- FY2019: 13.4%

- FY2020: 5.3%

- FY2021: 5.5%

- FY2022: 6.6%

- FY2023: 9.1%

- FY2024: 12.5%

- FY2025: 9.7%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.05×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 4.9B

- Net income, five-year total: GBP 4.7B

- Return on incremental invested capital: 7.4%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, final three-year average: 19.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.56×

- FY2022: 1.14×

- FY2023: 1.00×

- FY2024: 0.99×

- FY2025: 0.89×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks leaned toward cheaper years (informational)

- Per-share earnings: 1.03 to 1.43 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.0%

- Ordinary dilution, 5-year annual growth: -1.9%

- Market cap gain: GBP -11B

- Cumulative retained earnings: GBP 3.4B

- Diluted shares, 10-year annual growth: -1.0%

- Diluted shares, 5-year annual growth: -1.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 4.2%

- Per-share value change: GBP 0.40

- Per-share value, starting three-year median: GBP 1.03

- Per-share value, ending three-year median: GBP 1.43

- Buybacks concentrated in cheaper years (correlation): 0.82

- Average buyback yield: 1.6%

- Buyback history: 7 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: GBP 9.1B

- ROIC, last three-year median: 9.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: GBP 1.03

- FY2017: GBP 1.52

- FY2018: GBP 1.27

- FY2019: GBP 1.11

- FY2020: GBP 0.58

- FY2021: GBP 0.61

- FY2022: GBP 0.89

- FY2023: GBP 1.36

- FY2024: GBP 1.95

- FY2025: GBP 1.43

### accounting: pass

- Sloan accruals: -6.3%

- Receivables to sales index (DSRI): 1.03×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.19×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.17×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.3%

- FY2018: -3.1%

- FY2019: -4.6%

- FY2020: -7.8%

- FY2021: -5.5%

- FY2022: -2.3%

- FY2023: -3.2%

- FY2024: -7.5%

- FY2025: -6.3%

## Holders

## Price story

Down 27% since Apr 2024 · "Primark owner set for weaker profits as high gas prices to hit sugar arm" (uk.finance.yahoo.com, Jul 2026) · sales -3.1%

Story as of 2026-10-16T10:00:02.920Z; price observation 2026-10-15.

Price needs cash profits to grow 1% a year for ten years

- 2026-01-08: Primark owner warns over profits after disappointing festive sales ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/primark-owner-warns-over-profits-091243744.html))

- 2026-07-01: Primark owner set for weaker profits as high gas prices to hit sugar arm ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/primark-owner-set-weaker-profits-070744433.html))

### Sales · FY2024–2025

sales -3.1%; source https://filings.xbrl.org/GBQKSY6W7G0OHCQ8OQ72/2025-09-13/ESEF/GB/0/GBQKSY6W7G0OHCQ8OQ72-2025-09-13/reports/GBQKSY6W7G0OHCQ8OQ72-2025-09-13-T01.html; observed 2025-11-18.

- FY2016: GBP 13B 

- FY2017: GBP 15B 

- FY2018: GBP 16B 

- FY2019: GBP 16B 

- FY2020: GBP 14B 

- FY2021: GBP 14B 

- FY2022: GBP 17B 

- FY2023: GBP 20B 

- FY2024: GBP 20B 

- FY2025: GBP 19B 

### Gross margin · FY2025

gross margin 8.4%; source https://filings.xbrl.org/GBQKSY6W7G0OHCQ8OQ72/2025-09-13/ESEF/GB/0/GBQKSY6W7G0OHCQ8OQ72-2025-09-13/reports/GBQKSY6W7G0OHCQ8OQ72-2025-09-13-T01.html; observed 2025-11-18.

- FY2016: 23.4% 

- FY2017: 23.5% 

- FY2018: 23.0% 

- FY2019: 23.0% 

- FY2020: 22.5% 

- FY2021: 22.6% 

- FY2022: 22.2% 

- FY2023: 6.8% 

- FY2024: 9.1% 

- FY2025: 8.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in packaged foods; annual sales are GBP 19.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); FY2025: revenue 19459000000; grossProfit 1629000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ABF.LSE: Associated British Foods plc engages in the food, ingredients, and retail businesses worldwide. It operates through five segments: Retail, Grocery, Ingredients, Sugar, and Agriculture. The Retail segment is involved in buying and merchandising clothing and accessories through the Primark and Penneys retail chains, which offer women's, men's, and kidswear, as well as beauty, homeware, and accessories. The Grocery segment manufactures grocery products, including hot beverages, sugar, vegetable oils, balsamic vinegars, bread and baked goods, cereals, ethnic food and meat products to retail, wholesale, and foodservice businesses. The Ingredients segment manufactures yeast and bakery ingredients, specialty ingredients focused on enzymes, procession extracts, health and nutrition, and pharmaceutical delivery systems. The Sugar segment is involved in growing and processing sugar beet and sugar cane. The Agriculture segment manufactures specialty feed ingredients, premix, and compound animal feed; and other products and services for the agriculture sector. The company was incorporated in 1934 and is headquartered in London, the United Kingdom. Associated British Foods plc operates as a subsidiary of Wittington Investments Limited.

### Why customers stay

Margins ranged from 6.8% to 9.1% during 2023–25; it earns 9.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); FY2023: grossProfit / revenue = 6.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); FY2024: grossProfit / revenue = 9.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); FY2025: grossProfit / revenue = 8.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); 10-year return on capital observations [[2016,0.14069327829664685],[2018,0.14802743140666516],[2019,0.13390674375089542],[2020,0.05345137053486281],[2021,0.05453595497623106],[2022,0.06612858960604774],[2023,0.09115709905648732],[2024,0.12538505335231895],[2025,0.09722744112096977]]; median 0.09722744112096977. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 629 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); FY2016: growth capex 216823929.7394277; upkeep 557176070.2605723; owner earnings 746823929.7394277. Growth capex / owner earnings = 0.29032804266874407.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); FY2017: growth capex 252000000; upkeep 571000000; owner earnings 1198000000. Growth capex / owner earnings = 0.21035058430717862.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); FY2018: growth capex 79551742.74906838; upkeep 707448257.2509316; owner earnings 873551742.7490684. Growth capex / owner earnings = 0.09106700708846273.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); FY2019: growth capex 68000000; upkeep 612000000; owner earnings 878000000. Growth capex / owner earnings = 0.0774487471526196.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); FY2020: growth capex 0; upkeep 622000000; owner earnings 749000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); FY2021: growth capex 0; upkeep 627000000; owner earnings 748000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); FY2022: growth capex 0; upkeep 769000000; owner earnings 801000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); FY2023: growth capex 187000000; upkeep 886000000; owner earnings 1044000000. Growth capex / owner earnings = 0.17911877394636017.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); FY2024: growth capex 161015530.4198581; upkeep 962984469.5801419; owner earnings 1441015530.419858. Growth capex / owner earnings = 0.11173753996457221.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); FY2025: growth capex 0; upkeep 1099000000; owner earnings 914000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); Dividend observations: [[2016,279000000],[2017,299000000],[2018,327000000],[2019,358000000],[2020,271000000],[2021,49000000],[2022,380000000],[2023,345000000],[2024,502000000],[2025,656000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); FY2025: cash repurchases 629000000 GBP.

### Are managers owners

Insiders own 60.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ABF.LSE SharesStats.PercentInsiders = 60.537 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 1% yearly over ten years; actual growth was 9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); Ten-year compound average after fade. Initial solved rate 0.0008113185363572972. Price 1936; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.538012276300825 → FY2025 1.2766377663252848. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 2,462.00 per share

- 2016-11: GBX 2,550.00 per share

- 2016-12: GBX 2,745.00 per share

- 2017-01: GBX 2,386.00 per share

- 2017-02: GBX 2,619.00 per share

- 2017-03: GBX 2,606.00 per share

- 2017-04: GBX 2,810.00 per share

- 2017-05: GBX 2,996.00 per share

- 2017-06: GBX 2,936.00 per share

- 2017-07: GBX 2,964.00 per share

- 2017-08: GBX 3,322.00 per share

- 2017-09: GBX 3,193.00 per share

- 2017-10: GBX 3,332.00 per share

- 2017-11: GBX 2,948.00 per share

- 2017-12: GBX 2,820.00 per share

- 2018-01: GBX 2,733.00 per share

- 2018-02: GBX 2,631.00 per share

- 2018-03: GBX 2,491.00 per share

- 2018-04: GBX 2,704.00 per share

- 2018-05: GBX 2,650.00 per share

- 2018-06: GBX 2,738.00 per share

- 2018-07: GBX 2,455.00 per share

- 2018-08: GBX 2,289.00 per share

- 2018-09: GBX 2,290.00 per share

- 2018-10: GBX 2,386.00 per share

- 2018-11: GBX 2,424.00 per share

- 2018-12: GBX 2,043.00 per share

- 2019-01: GBX 2,388.00 per share

- 2019-02: GBX 2,243.00 per share

- 2019-03: GBX 2,439.00 per share

- 2019-04: GBX 2,559.00 per share

- 2019-05: GBX 2,468.00 per share

- 2019-06: GBX 2,463.00 per share

- 2019-07: GBX 2,420.00 per share

- 2019-08: GBX 2,271.00 per share

- 2019-09: GBX 2,303.00 per share

- 2019-10: GBX 2,226.00 per share

- 2019-11: GBX 2,569.00 per share

- 2019-12: GBX 2,598.00 per share

- 2020-01: GBX 2,626.00 per share

- 2020-02: GBX 2,255.00 per share

- 2020-03: GBX 1,814.00 per share

- 2020-04: GBX 1,892.50 per share

- 2020-05: GBX 1,821.00 per share

- 2020-06: GBX 1,915.00 per share

- 2020-07: GBX 1,765.00 per share

- 2020-08: GBX 2,046.00 per share

- 2020-09: GBX 1,867.50 per share

- 2020-10: GBX 1,697.50 per share

- 2020-11: GBX 2,110.00 per share

- 2020-12: GBX 2,264.00 per share

- 2021-01: GBX 2,117.00 per share

- 2021-02: GBX 2,368.00 per share

- 2021-03: GBX 2,415.00 per share

- 2021-04: GBX 2,308.00 per share

- 2021-05: GBX 2,321.00 per share

- 2021-06: GBX 2,216.00 per share

- 2021-07: GBX 2,007.00 per share

- 2021-08: GBX 1,980.00 per share

- 2021-09: GBX 1,860.00 per share

- 2021-10: GBX 1,788.00 per share

- 2021-11: GBX 1,923.00 per share

- 2021-12: GBX 2,008.00 per share

- 2022-01: GBX 1,941.00 per share

- 2022-02: GBX 1,920.00 per share

- 2022-03: GBX 1,662.00 per share

- 2022-04: GBX 1,606.50 per share

- 2022-05: GBX 1,730.00 per share

- 2022-06: GBX 1,578.00 per share

- 2022-07: GBX 1,672.00 per share

- 2022-08: GBX 1,525.00 per share

- 2022-09: GBX 1,261.50 per share

- 2022-10: GBX 1,349.50 per share

- 2022-11: GBX 1,581.00 per share

- 2022-12: GBX 1,576.00 per share

- 2023-01: GBX 1,856.00 per share

- 2023-02: GBX 2,007.00 per share

- 2023-03: GBX 1,940.00 per share

- 2023-04: GBX 1,956.00 per share

- 2023-05: GBX 1,825.50 per share

- 2023-06: GBX 1,991.00 per share

- 2023-07: GBX 2,050.00 per share

- 2023-08: GBX 1,992.50 per share

- 2023-09: GBX 2,068.00 per share

- 2023-10: GBX 2,026.00 per share

- 2023-11: GBX 2,378.00 per share

- 2023-12: GBX 2,367.00 per share

- 2024-01: GBX 2,341.00 per share

- 2024-02: GBX 2,273.00 per share

- 2024-03: GBX 2,498.00 per share

- 2024-04: GBX 2,656.00 per share

- 2024-05: GBX 2,550.00 per share

- 2024-06: GBX 2,474.00 per share

- 2024-07: GBX 2,482.00 per share

- 2024-08: GBX 2,490.00 per share

- 2024-09: GBX 2,333.00 per share

- 2024-10: GBX 2,221.00 per share

- 2024-11: GBX 2,198.00 per share

- 2024-12: GBX 2,043.00 per share

- 2025-01: GBX 1,902.00 per share

- 2025-02: GBX 1,895.00 per share

- 2025-03: GBX 1,910.00 per share

- 2025-04: GBX 2,064.00 per share

- 2025-05: GBX 2,083.00 per share

- 2025-06: GBX 2,058.00 per share

- 2025-07: GBX 2,198.00 per share

- 2025-08: GBX 2,160.00 per share

- 2025-09: GBX 2,051.00 per share

- 2025-10: GBX 2,295.00 per share

- 2025-11: GBX 2,136.00 per share

- 2025-12: GBX 2,127.00 per share

- 2026-01: GBX 1,905.00 per share

- 2026-02: GBX 1,977.00 per share

- 2026-03: GBX 1,876.50 per share

- 2026-04: GBX 1,827.00 per share

- 2026-05: GBX 1,822.00 per share

- 2026-06: GBX 1,986.00 per share

- 2026-07: GBX 2,087.00 per share

- 2026-08: GBX 2,052.00 per share

- 2026-09: GBX 1,858.00 per share

- 2026-10: GBX 1,871.50 per share

## Annual estimated value (GBX per share)

- FY2016: low GBX 1,076.87 per share, central GBX 1,505.84 per share, high GBX 1,759.62 per share

- FY2017: low GBX 1,233.12 per share, central GBX 1,742.40 per share, high GBX 2,038.96 per share

- FY2018: low GBX 1,590.23 per share, central GBX 2,125.66 per share, high GBX 2,465.89 per share

- FY2019: low GBX 1,573.47 per share, central GBX 2,045.10 per share, high GBX 2,368.31 per share

- FY2020: low GBX 1,296.20 per share, central GBX 1,444.39 per share, high GBX 1,641.66 per share

- FY2021: low GBX 1,322.63 per share, central GBX 1,469.57 per share, high GBX 1,665.19 per share

- FY2022: low GBX 1,623.19 per share, central GBX 1,976.85 per share, high GBX 2,269.57 per share

- FY2023: low GBX 1,832.00 per share, central GBX 2,317.90 per share, high GBX 2,685.99 per share

- FY2024: low GBX 1,987.33 per share, central GBX 2,563.59 per share, high GBX 2,971.18 per share

- FY2025: low GBX 1,908.55 per share, central GBX 2,497.42 per share, high GBX 2,907.34 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:41.233Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/GBQKSY6W7G0OHCQ8OQ72/2025-09-13/ESEF/GB/0/GBQKSY6W7G0OHCQ8OQ72-2025-09-13/reports/GBQKSY6W7G0OHCQ8OQ72-2025-09-13-T01.html); period 2025-09-13, filed 2025-11-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.