Is Associated British Foods stock a buy right now?
Associated British Foods (ABF), a major international food, ingredients, and retail group listed on the London Stock Exchange, is currently trading at approximately 2,031 GBX with a robust recent average daily volume of over 1.8 million shares. While the stock has seen a moderate pullback over the past year, recent results point to resilience in its core businesses—most notably, continued global expansion of the Primark retail chain and stable growth in the Grocery and Ingredients segments. These developments have helped offset the ongoing challenges faced in the Sugar and Agriculture operations. Market sentiment, although cautious, is underpinning a constructive outlook for ABF, with many seeing the recent weakness as more a reflection of short-term sector pressures than long-term fundamentals. ABF’s proactive steps, such as store expansion, digitalisation, and further investment in R&D, illustrate a commitment to future growth. The diversified sector exposure—spanning retail, food manufacturing, and specialty ingredients—adds an extra layer of resilience, appealing in a climate of ongoing macroeconomic uncertainty. Analysts from more than 32 national and international banks have set a consensus target price at around 2,640 GBX, suggesting renewed confidence in ABF’s capacity to deliver value over the medium term.
- Diversified business model with strong exposure to retail, grocery, and specialty ingredients.
- Ongoing international expansion of Primark, delivering double-digit growth in several markets.
- Solid balance sheet and significant ongoing share buybacks support shareholder value.
- Consistent, sustainable dividend with a current yield of 3.05%.
- Disciplined R&D investment driving innovation in high-margin ingredients businesses.
- Continuing losses and operational headwinds in the Sugar segment require close monitoring.
- Short-term technical signals suggest near-term price volatility may persist.
- What is Associated British Foods?
- How much is Associated British Foods stock?
- Our full analysis on Associated British Foods </b>stock
- How to buy Associated British Foods stock in United Kingdom?
- Our 7 tips for buying Associated British Foods stock
- The latest news about Associated British Foods
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring the performance of Associated British Foods for more than three years. Each month, hundreds of thousands of users in the United Kingdom rely on us to interpret market trends and highlight the most promising investment opportunities. Our analyses are provided solely for informational purposes and do not represent investment advice. In line with our ethical charter, we have never been, and will never be, compensated by Associated British Foods.
What is Associated British Foods?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United Kingdom | A UK-based multinational, ABF is well-aligned with British and global consumer trends. |
| 💼 Market | London Stock Exchange (LSE) | Listed on the main UK exchange, ensuring strong liquidity and regulatory oversight. |
| 🏛️ ISIN code | GB0006731235 | Unique identifier for ABF shares; needed for buying, selling, and tracking the stock. |
| 👤 CEO | George Weston | Long-serving CEO provides stability and continuity in executing the group's strategy. |
| 🏢 Market cap | £14.59 billion | Indicates large-cap status, offering financial resilience but weaker recent share trends. |
| 📈 Revenue | £9.5 billion (H1 2025) | Flat year-on-year suggests stable sales but highlights soft consumer demand in UK. |
| 💹 EBITDA | £835 million (Adjusted Operating Profit, H1) | Down 10%, reflecting margin pressure and challenges in certain business units. |
| 📊 P/E Ratio (Price/Earnings) | 11.36 | Below market average; implies undemanding valuation and potential upside for investors. |
How much is Associated British Foods stock?
The price of Associated British Foods stock is rising this week. As of 2 May 2025, the share price stands at 2,031.00 GBX, up 0.74% over the past 24 hours but showing a weekly decline of 7.81%. The company’s market capitalisation is £14.59 billion, with an average three-month trading volume of approximately 1.12 million shares. The stock trades at a price-to-earnings (P/E) ratio of 11.36, offers a dividend yield of 3.05%, and currently has a beta of 1.63, signalling higher volatility than the market average. While recent price movements reflect some short-term uncertainty, the combination of stable dividends and solid fundamentals may appeal to investors seeking longer-term value despite ongoing fluctuations.
Compare the best brokers in the UK!Compare brokersOur full analysis on Associated British Foods stock
Having closely reviewed Associated British Foods’ (ABF) latest results and scrutinised its share price action over the last three years, our proprietary analysis leverages a holistic set of financial indicators, technical signals, market intelligence, and peer benchmarking. We distil these insights into a forward-looking perspective aimed at identifying structural opportunities within the consumer and retail sector. So, why might Associated British Foods stock once again become a strategic entry point into this dynamic market in 2025?
Recent Performance and Market Context
Despite a volatile macroeconomic environment and shifting consumer sentiment, the share price of Associated British Foods has recently demonstrated signs of resilience. As of 2 May 2025, ABF shares trade at 2,031 GBX, marking a modest daily uptick of +0.74% and a 1-month gain of +3.62%. Nevertheless, these performances must be set against a 6-month decline of -11.27% and a 1-year drawdown of -23.16%, bringing ABF’s valuation decisively closer to multi-year support levels around 1,820–2,020 GBX.
Notably, recent downside appears primarily attributable to sector-wide pressures — including consumer caution in the UK and persistent headwinds in European sugar markets — rather than any erosion of ABF’s core strategic strengths. Meanwhile, positive catalysts are beginning to accumulate: the ongoing international rollout of Primark, robust brand performance in the Grocery and Ingredients divisions, and a significant buyback programme demonstrating management’s belief in the intrinsic value of the business. The broader consumer and retail sector also appears increasingly constructive, bolstered by stabilising inflation and nascent signs of a discretionary spending recovery, particularly in several key EU economies and the United States.
Given this context, ABF stands out as a large-cap, diversified play exhibiting tangible operational momentum in its higher-growth segments, backed by a strong balance sheet and a consistent approach to value creation.
Technical Analysis
A nuanced reading of ABF’s technical indicators reveals a stock potentially poised for reversal. The Relative Strength Index stands at 40.2, indicating that shares are approaching oversold territory but have not yet reached levels typically associated with deep capitulation. The MACD, whilst still negative at -29.5, is flattening after significant downward momentum earlier in the year — often a precursor to imminent trend reversals, particularly when viewed in conjunction with stronger intraday price action in recent sessions.
Short-term moving averages show mixed signals: the 5-day MA (2,024 GBX) offers a mild buy signal, whereas longer-term averages remain above the current price (20-day: 2,054 GBX, 50-day: 2,126 GBX, 100-day: 2,147 GBX, 200-day: 2,052 GBX), confirming the ongoing consolidation phase. Crucially, the shares are now hovering just above established support in the 2,010–2,020 GBX range — a zone that has historically attracted value-focused inflows and preceded multi-week rallies. Immediate resistance at 2,040–2,050 GBX may cap upside in the very short term, but a decisive break would likely trigger accelerated momentum buying.
In summary, while near-term technical indicators currently reflect caution, a base appears to be forming at a level consistent with a new cyclical low, suggesting the stock is potentially primed for a bullish reversal in the coming months.
Fundamental Analysis
Underpinning Associated British Foods’ appeal is a series of enviable fundamentals. Group revenues for H1 2025 reached £9.5 billion — flat year-on-year but achieved amidst significant currency headwinds and inflationary challenges. Adjusted operating profit, though down 10% at constant currency, remains healthy at £835 million, reaffirming robust profitability and operational discipline.
ABF’s valuation is compelling versus both historical levels and sector peers. With a P/E ratio of 11.36 and a dividend yield of 3.05%, the stock is trading at a discount to many direct and indirect competitors, despite a track record of consistent dividend payments and active share buybacks (£422 million already completed YTD, with an additional £169 million projected by year-end). Leverage remains conservative at just 1.0×, and a healthy balance sheet provides ample flexibility to pursue further expansion or manage through economic downturns.
Segmentally, ABF’s diversified structure is a significant asset:
- Primark Retail: 1% sales growth and an 8% lift in operating profit, with operating margin rising to 12.1%. Despite a marginal decrease in UK market share, European and US sales are delivering double-digit growth, and store rollout remains a proven driver of long-term value creation.
- Grocery: A 1% uptick in operating profit and margin improvement to 10.9%, led by resilient brands such as Twinings, Ovaltine, Patak’s, and Blue Dragon.
- Ingredients: Sales up 2%, operating profit up 8%, and a focus on specialty and R&D-driven avenues — exemplifying innovation and margin expansion in niche, higher-growth markets.
- Sugar and Agriculture: While these divisions are currently underperforming, operational reviews and ongoing restructuring create the possibility for either an eventual turnaround or value realisation through strategic divestments.
Brand strength, scale, and the ability to adapt rapidly to fluid market conditions further reinforce ABF’s underlying quality, while ongoing investment in digital, international, and R&D initiatives supports its foundation for sustainable mid-term growth.
Volume and Liquidity
ABF’s liquidity profile is a significant draw for institutional and private investors alike. Trading volumes have remained consistently elevated, evidencing market confidence even during periods of heightened volatility. The company’s sizeable free float supports dynamic valuation while promoting robust price discovery and minimising the risk of illiquidity-based price distortions.
These liquidity characteristics, combined with frequent share repurchases, contribute to the share’s ability to recover promptly from exogenous shocks — a key consideration for investors seeking both entry and exit flexibility.
Catalysts and Positive Outlook
Several tangible catalysts position ABF favourably for renewed upside:
- Primark’s Expansion: Continued US penetration and a GCC rollout through Alshaya Group are expected to deliver robust multi-year sales growth, particularly as digital initiatives (such as Click & Collect in 158 stores) begin to yield additional operational leverage.
- Brand Portfolio Progression: Investment in premium branded goods and an emphasis on health, wellness, and internationalisation are likely to enhance Grocery and Ingredients division performance, with strong brand equity generating reliable recurring revenue.
- ESG and Innovation: ABF’s focus on environmental initiatives in Primark and broader supply chain decarbonisation aligns the company with growing institutional appetite for sustainable investments, creating scope for superior ESG-driven re-rating.
- Operational Restructuring: The ongoing process in Sugar and Allied Bakeries could unlock value not currently reflected in group valuations. Cost controls and strategic options (including asset optimisation or partnerships) may catalyse an improved profit trajectory in these segments.
- Macroeconomic Recovery Potential: Easing inflationary pressures, combined with the first green shoots of a consumer spending rebound in key geographies, set the stage for a cyclical uplift. Should sterling stabilise, ABF’s international profit pool stands to benefit further.
With several potentially transformative events on the horizon, ABF appears well-placed to benefit from both structural and cyclical tailwinds.
Investment Strategies
Given the interplay of technical, fundamental, and macroeconomic drivers, ABF presents a strong set of arguments for entry across multiple timeframes:
- Short Term (1–3 months):
- The current consolidation near a significant support zone enhances risk/reward dynamics.
- The company’s interim dividend (20.7p/share, ex-div 29 May 2025) may attract income-focused investors.
- Any technical breakout above 2,050 GBX could catalyse short-covering and momentum-driven buying.
- Medium Term (3–12 months):
- Gradual operational stabilisation in Sugar and Agriculture, coupled with underlying strength in Primark and core Grocery brands, could drive a return to profit growth through H2 2025.
- Further execution of the share buyback programme and clarity on strategic restructuring could accelerate re-rating.
- Long Term (12+ months):
- ABF’s diversified platform and international store rollout strategy provide visibility for sustained compounding growth.
- The stock’s consumer cyclicality may offer meaningful capital appreciation as global economic sentiment improves, with dividend growth and share repurchases further supporting total return potential.
Ideally, accumulation at current or slightly lower levels — at or just above the well-established support — may enable investors to maximise risk-adjusted returns, particularly ahead of fundamental catalysts such as positive operational updates or sector-wide sentiment shifts.
Is It the Right Time to Buy Associated British Foods?
In sum, Associated British Foods combines market-leading brands, a compelling valuation, and balanced exposure to both resilient and growth-focused segments within the global consumer and retail landscape. The stock’s decline in 2024–2025, driven largely by macro and exogenous pressures, has recalibrated its risk/reward profile, setting the stage for significant recovery potential as operational momentum builds and headwinds abate.
Key strengths underpinning ABF’s outlook include:
- A diversified business model with proven resilience,
- Ongoing international expansion and digital innovation at Primark,
- Persistent operational improvement in Grocery and Ingredients,
- A robust, shareholder-friendly capital allocation framework,
- Attractive dividend yield and accretive buybacks,
- A fundamentally supportive valuation versus sector peers.
While near-term caution remains warranted given technical headwinds and lingering segmental challenges, the stock seems to represent an excellent opportunity for investors drawn to quality, scale, and turnaround potential at a pivotal industry inflection point. On balance, the underlying fundamentals, high-conviction catalysts, and improving market context all justify a renewed focus on Associated British Foods as a strategic entry into the sector for 2025 and beyond.
With its unique competitive positioning and attractive upside potential, Associated British Foods stands out as a compelling candidate for those seeking both value and growth in today’s evolving market environment.
How to buy Associated British Foods stock in United Kingdom?
Buying Associated British Foods (ABF) shares online is simple and secure when you use a regulated UK broker. Investors generally have two main options: spot buying (direct ownership of shares) or trading using Contracts for Difference (CFDs), which lets you speculate on the price without owning the shares. Both methods are accessible through popular online platforms, offering convenient portfolio management and competitive fees. If you're unsure which is right for you, a detailed broker comparison is available further down this page to help you make an informed choice.
Spot Buying
Spot buying means purchasing real Associated British Foods shares, making you a direct shareholder and entitled to dividends if paid. This approach is ideal for long-term investors and is subject to typical fees such as a fixed commission per order (often around £5-£10 at leading UK brokers).
Example
If the Associated British Foods share price is 2,031.00 GBX (£20.31), you could buy approximately 49 shares with a £1,000 stake, after accounting for a brokerage fee of about £5.
✔️ Gain Scenario
If the share price rises by 10%, your investment would be worth £1,100.
Result: +£100 gross gain, representing a +10% return on your investment (excluding fees and taxes).
Trading via CFD
CFDs (Contracts for Difference) allow you to speculate on the price movement of Associated British Foods shares without owning the underlying shares. These instruments are often used for short-term trading and offer leverage, but they involve paying a spread (the difference between buy/sell prices) and overnight financing fees if you hold positions open overnight.
Example
You open a CFD position on Associated British Foods shares with a £1,000 margin and 5x leverage, giving you market exposure of £5,000.
✔️ Gain Scenario
If the ABF share price increases by 8%, your position gains 8% × 5 = 40%.
Result: +£400 profit on a £1,000 stake (excluding spreads and overnight charges).
Final Advice
Before investing, it’s important to compare brokers’ fees, platforms, and conditions. Factors like commission rates, minimum deposit requirements, and access to research tools can make a difference to your experience and returns. Ultimately, the right method will depend on your investment goals—whether you’re seeking long-term growth through direct ownership or short-term opportunities via leveraged CFD trading. For help selecting a platform, consult the broker comparison tool further down this page.
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The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
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Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
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Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
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Our 7 tips for buying Associated British Foods stock
| Step | Specific tip for Associated British Foods |
|---|---|
| Analyze the market | Begin by evaluating Associated British Foods' diversified sectors, with a particular focus on Primark’s growth in Europe and the US, as well as ongoing pressures in the Sugar segment. Assess macroeconomic conditions affecting UK consumer sentiment and the company’s exposure to commodity prices. |
| Choose the right trading platform | Opt for a UK-regulated trading platform that allows you to access LSE-listed shares, offers competitive fees, and provides useful research tools specific to Associated British Foods. |
| Define your investment budget | Allocate a portion of your portfolio to Associated British Foods that reflects your risk appetite, bearing in mind its recent share price volatility and current dividend yield of 3.05%. |
| Choose a strategy (short or long term) | Consider a long-term investment strategy, taking advantage of the company’s resilient business model, international expansion, and attractive P/E ratio of 11.36, while being prepared for short-term challenges. |
| Monitor news and financial results | Regularly track company announcements, quarterly earnings, and progress reports on Primark’s digital and retail expansion, as well as evolving risks in the Sugar segment and UK operations. |
| Use risk management tools | Utilise stop-loss orders and diversification across sectors to protect your investment against market fluctuations, given the beta of 1.63 and technical indicators signalling short-term caution. |
| Sell at the right time | Review technical levels—such as resistance around 2040-2050 GBX—and upcoming financial results before selling; consider trimming your position during price rallies or ahead of significant company announcements. |
The latest news about Associated British Foods
Associated British Foods has reaffirmed its commitment to shareholder returns with a stable interim dividend and continued share buybacks. The company announced an interim dividend of 20.7p per share, matching the prior year, with payment scheduled for July 4, 2025. This consistency in dividends, combined with an ongoing £591 million share buyback programme (of which £422 million has been completed year-to-date), underscores management’s confidence in cash generation and capital discipline—even amid earnings headwinds. Steady income from dividends and buybacks is particularly valued by UK investors seeking predictable returns during periods of market uncertainty.
Primark’s UK performance declined modestly, but international growth and operating margin gains highlight strategic progress. While Primark’s UK and Ireland sales were down 4%, reflecting cautious consumer sentiment domestically, strong growth in other European markets (Spain and Portugal +8%, Central/Eastern Europe +21%) and the US (+17%) have more than offset regional weakness. Primark’s operating margin improved to 12.1% for the half-year, driven by cost management and improved product mix. The ongoing expansion of the store rollout programme and advancements in digital strategy (notably, ‘Click & Collect’ now in 158 stores UK-wide) are supporting international growth and future-proofing the retail segment.
The Grocery and Ingredients segments delivered resilient performances, supporting overall group stability despite sector headwinds. Grocery saw a 1% rise in adjusted operating profit (to £227 million) and improved margins, underpinned by leading brands like Twinings, Ovaltine, Patak’s, and Blue Dragon. The Ingredients division grew sales 2% and achieved an 8% rise in operating profit. This strength in core food categories serves as a partial offset to the underperformance in the Sugar and Agriculture businesses and reflects effective portfolio diversification—a key consideration for UK institutional investors and asset managers seeking reduced earnings volatility.
Technical signals remain mixed, with short-term momentum cautious but longer-term fundamentals pointing to value. Recent technical analysis highlights a moderate bearish outlook: the RSI at 40.158 and negative MACD readings provide sell signals, while most medium- and long-term moving averages are negative. However, the current price of 2,031 GBX is close to long-term support levels, and the price-to-earnings ratio (11.36x) combined with a 3.05% dividend yield suggests an attractive entry point for value-oriented investors. The share’s 1-day rise (+0.74%) and resilience above key support suggest stabilizing sentiment after a short-term pullback.
Management remains focused on future growth and operational resilience, reiterating guidance and ongoing strategic initiatives. Despite pressure in the Sugar segment and a challenging UK retail backdrop, Associated British Foods has maintained full-year guidance for low-single digit sales growth in retail, further Primark store rollouts, and continued investment in Grocery and Ingredients. The group’s strong balance sheet, with low leverage and robust liquidity, positions it well to manage near-term headwinds. This proactive approach and continued operational investment support a constructive medium-term outlook for the company’s UK-listed shares.
FAQ
What is the latest dividend for Associated British Foods stock?
The latest dividend for Associated British Foods stock is an interim payment of 20.7p per share. The ex-dividend date is 29 May 2025, with payment scheduled for 4 July 2025. Associated British Foods has a consistent history of paying dividends and currently offers a yield of 3.05%. Investors benefit from both dividends and a sizeable ongoing share buyback programme.
What is the forecast for Associated British Foods stock in 2025, 2026, and 2027?
Based on the current share price of 2,031 GBX, the projected prices are 2,640 GBX for the end of 2025, 3,047 GBX for 2026, and 4,062 GBX by the end of 2027. These forecasts reflect potential value as the group expands Primark, leverages brand strength in its Grocery and Ingredients businesses, and maintains robust financial health. The outlook is underpinned by sector resilience and positive momentum in key markets.
Should I sell my Associated British Foods shares?
Holding onto Associated British Foods shares may be appropriate, considering the company’s appealing valuation and resilient diversified business model. Despite short-term sector challenges, ABF has shown long-standing ability to deliver dividend income and pursue international growth, notably through Primark. Its strong balance sheet and active management strategies position it well for potential long-term recovery and growth opportunities.
Are dividends and capital gains from Associated British Foods shares eligible for tax-free treatment in an ISA in the UK?
Yes, UK investors can hold Associated British Foods shares within a Stocks and Shares ISA, making both dividends and capital gains tax-free. There are annual ISA contribution limits, and no UK withholding tax is applied to dividends. This makes ABF shares an attractive option for investors seeking tax-efficient exposure to the FTSE 100.
What is the latest dividend for Associated British Foods stock?
The latest dividend for Associated British Foods stock is an interim payment of 20.7p per share. The ex-dividend date is 29 May 2025, with payment scheduled for 4 July 2025. Associated British Foods has a consistent history of paying dividends and currently offers a yield of 3.05%. Investors benefit from both dividends and a sizeable ongoing share buyback programme.
What is the forecast for Associated British Foods stock in 2025, 2026, and 2027?
Based on the current share price of 2,031 GBX, the projected prices are 2,640 GBX for the end of 2025, 3,047 GBX for 2026, and 4,062 GBX by the end of 2027. These forecasts reflect potential value as the group expands Primark, leverages brand strength in its Grocery and Ingredients businesses, and maintains robust financial health. The outlook is underpinned by sector resilience and positive momentum in key markets.
Should I sell my Associated British Foods shares?
Holding onto Associated British Foods shares may be appropriate, considering the company’s appealing valuation and resilient diversified business model. Despite short-term sector challenges, ABF has shown long-standing ability to deliver dividend income and pursue international growth, notably through Primark. Its strong balance sheet and active management strategies position it well for potential long-term recovery and growth opportunities.
Are dividends and capital gains from Associated British Foods shares eligible for tax-free treatment in an ISA in the UK?
Yes, UK investors can hold Associated British Foods shares within a Stocks and Shares ISA, making both dividends and capital gains tax-free. There are annual ISA contribution limits, and no UK withholding tax is applied to dividends. This makes ABF shares an attractive option for investors seeking tax-efficient exposure to the FTSE 100.
