Annual Report and Accounts 2026

Group revenue

Adjusted operating profit*

Gross investment*

Adjusted earnings per share*

Women in the workforce

(2025: 57%)

Number of employees and number of countries

140,000 / 57

(2025: 138,000 / 56)

ABF Group Scope 1 and 2 (market based)

(2025: 2,410kt)

Primark number of stores and selling space

(2025: 473 / 19.5m sq ft)

* Alternative Performance Measures ('APMs') as defined on pages 216 to 220

Strategic report Governance

On the cover

Primark's store at Herald Square in Manhattan, New York, USA

Tea being produced at Twinings in Swarzędz, Poland The Ohly plant in Hamburg, Germany

Sugar cane en route from field to factory, Nakambala Estate, Zambia

Raw ingredients being added to bulk containers at Premier Nutrition's premix production site in Fradley, UK On this page

Primark's new distribution centre in Newbridge, County Kildare, Ireland

221 Company financial statements

1. Progress report

2. Glossary

3. Company directory

Visit our website https://www.abf.co.uk for detailed information relating to our responsibility activities during 2026

Associated British Foods plc | 1 | Annual Report 2026

Our purpose is to provide safe, nutritious and affordable food, and clothing that is great value for money.

Our businesses operate in different markets, serve different customers and meet different needs, yet they are united by a common approach: building the capabilities required to grow, compete and create value over the long term.

Through disciplined investment in people, infrastructure, brands and innovation, we have developed strong businesses with leading positions in food and retail.

Operating sustainably and responsibly is integral to this approach, shaping how we manage our supply chains, support our communities and deliver long-term value for all stakeholders.

Associated British Foods plc | 2 | Annual Report 2026

Primark

An international value retailer offering clothing, beauty and homeware through a growing store network across Europe, US and the Middle East.

Revenue

(2025:£9,489m)

Adjusted operating profit

(2025:£1,126m)

Read more on page 18

Grocery

A portfolio of international brands and regional food businesses with leading positions across multiple grocery categories and markets.

Ingredients

A global ingredients business supplying yeast, bakery ingredients and specialty ingredients for food, health and nutrition and pharmaceutical markets.

Revenue

(2025: £4,125m)

Adjusted operating profit

(2025: £478m)

Read more on page 30

Revenue

(2025: £2,041m)

Adjusted operating profit

(2025: £257m)

Read more on page 34

Sugar

A sugar producer operating across Africa, the UK and Spain, producing sugar from both cane and beet.

Agriculture

An international agri-food business producing animal feed, feed ingredients and premix, alongside an integrated UK dairy business.

Revenue

(2025: £2,047m)

Adjusted operating loss

(2025: £(1)m)

Read more on page 38

Revenue

(2025: £1,029m)

Adjusted operating profit

(2025: £18m)

Read more on page 42

CHAIRMAN'S STATEMENT

Michael McLintock Chairman

This year's results reflect a challenging operating context that has been dominated by macroeconomic headwinds, but the Group has made important strategic and operational progress in a number of areas.

Group adjusted operating profit was £1,508m, down 13% at actual exchange rates and 14% at constant currency rates on last year. Adjusted profit before tax was £1,457m, down 14% on last year, and adjusted earnings per share was 156.0p, down 11%. This primarily reflects profit reductions in Retail.

Looking at our divisions in detail, Primark sales grew 2% at constant currency and 4% at actual rates, driven by actions to strengthen the customer proposition as well as new stores and the rollout of our franchise model, which contributed 5% to sales growth. Like-for-like sales, however, were down 2.6% for the full year. Adjusted operating profit margin was 10.2%, in line with expectations, and adjusted operating profit was £1,005m, down 12% at constant currency exchange rates and 11% at actual currency rates. This reflects a challenging consumer environment in most of our markets and, while progress has been made in improving the customer proposition in the UK and especially womenswear, there is much more to do in Europe and the US. Looking ahead, Primark has taken important decisions to invest in future growth drivers, expanding its international franchise model and deciding to offer home delivery in Great Britain in the future.

Separation of Retail and Food businesses

The proposed demerger reflects the strength and maturity of two distinctive businesses that have evolved over many decades. While Retail and Food operate in different markets and serve different customers, they have been shaped by a shared approach to governance, disciplined capital allocation and responsible business practices.

These common frameworks have supported strong decision-making, long-term investment and a culture of accountability across the Group. They have helped create businesses with clear market positions, resilient operating models and the capability to succeed independently.

As separate companies, both businesses will retain these foundations while gaining greater strategic focus, oversight and accountability. The Board believes this will position each business to build on its strengths, invest behind its priorities and create long-term value for shareholders and other stakeholders.

CHAIRMAN'S STATEMENT CONTINUED

In Grocery, revenue was £4.2bn, up 3% at actual rates and 2% at constant currency rates on last year. However, adjusted operating profit was below expectations at £427m, down 11% at actual exchange and constant currency rates, mainly due to a decline in the US oils category, higher cocoa costs and a step-up in technology costs in a number of businesses.

In the UK, we completed the acquisition of Hovis, which gives us the ability to create a sustainably profitable bakeries business, supported by investment in marketing and innovation.

In Ingredients, sales were up to £2.1bn, an increase of 3% at actual exchange rates and 2% at constant currency rates. AB Mauri, our yeast and bakery business, saw good sales growth in most markets, and our specialty ingredients portfolio, ABFI, continued to grow well overall. Increased investment and US consumer weakness for bakery ingredients, however, means adjusted operating profit was moderately below last year at

£238m, 7% down at actual exchange rates and 8% at constant currency rates, which is in line with our expectations.

This has been another difficult year for Sugar, where the adjusted operating loss was £47m. This was driven by lower average prices compared to last year, as well as an increased level of onerous contract provisions taken this year arising from an expected small UK crop in conjunction with inadequate overhead recoveries, continued low European sugar prices and elevated natural gas costs. We are taking action to manage the cost base across the Sugar division, including through the closure of British Sugar's Cantley factory. Early indicators suggest that improved sugar prices will benefit the business

in 2028.

In Agriculture, adjusted operating profit was broadly flat at

£19m, in line with our expectations. We continue to simplify the division and focus on higher growth segments, including through the exit from UK compound feed and a more customer centric operating model and Frontier.

Investment

ABF invests for long-term growth where we are confident projects offer attractive shareholder returns. Group gross investment for the year was £1,433m, up 15% on last year. The increase was driven mainly by acquisitions of £167m, including of Hovis, Elementis, Abe's Bagels and Casa de Bolos. We have also seen the completion of multi-year projects which extend capacity, strengthen capabilities and modernise operations to drive efficiency.

Demerger

In April, the Board completed its in-depth review of the Group structure and concluded that a demerger of Primark from the Food business is the best way to maximise long-term returns for shareholders. The decision was reached having looked in detail at the financial, commercial, legal and organisational consequences of the demerger. The demerger is anticipated to be effective in December 2027.

A demerger will deliver a number of benefits to each business -in particular, oversight by boards that are directly aligned to their respective industry dynamics, clearer investment propositions and accountability to shareholders specifically interested in either Food or Primark. The opportunities ahead for both Primark and AB Foods are considerable and the Board firmly believes that each will thrive as an independent entity.

To ensure a smooth transition through the demerger process,

I have agreed with the Board that I will continue as Chairman of ABF until the completion of the demerger.

AB Foods is how we will refer to the standalone food business post the demerger of Primark and, in anticipation of that, how we will refer to our group of food businesses going forward.

CHAIRMAN'S STATEMENT CONTINUED

Capital structure and shareholder returns

We completed our latest £250m share buyback programme in August. Over the past four years, we have returned almost

£3.9bn back to shareholders via dividends, special dividends and share buybacks. Our balance sheet, whilst strong, no longer carries what we would consider to be excess capital. The final dividend has therefore been maintained and we have decided not to undertake further share buybacks for the time being as we want the two new standalone businesses to be well capitalised with strong balance sheets.

Board

In March 2026, we announced the appointment of Joana Edwards to the Board as Group Chief Financial Officer. The Board and I were impressed by the capability and strength Joana brought to the interim position, demonstrating both the judgement and the skillset required for the role. We were delighted to welcome her to the Board.

We also announced the appointment of Eoin Tonge as the Primark Chief Executive. Eoin's understanding of the business, combined with his financial acumen and strategic clarity, give him the right breadth of qualities and experience to develop and grow Primark. Eoin remains a member of the Board of ABF.

Work is well underway to appoint a Chair of Primark, after which we will begin to look for non-executive members.

Outlook

We expect the tough operating environment to continue and remain cautious on consumer sentiment and the impact of inflation and higher energy costs. In particular, Sugar remains under pressure and Grocery will incur the costs of the Hovis integration.

Group adjusted operating profit and adjusted EPS are expected to be below this year.

In Primark, we expect new space growth in Europe, the US and our franchise markets to contribute around 4% to sales growth. Adjusted operating margin is expected to be approximately 10%, reflecting continued investment in like-for-like sales growth. This does not include the impact of the expected dis-synergy costs as Primark moves towards demerger readiness.

We expect Grocery adjusted operating profit to be broadly in line with 2026. While Hovis will be slightly dilutive to Grocery profit in 2027, it is expected to be accretive to profit in subsequent years.

In Ingredients, profit is expected to be broadly in line with this year due to start-up costs in our new yeast facility in India. We expect Agriculture to grow in 2027.

We remain cautious on the outlook for Sugar in 2027. We expect the operating loss to be greater and to be in the range of minus £70m to minus £170m. A number of factors could materially influence the outcome, either positively or negatively, including significantly higher gas costs, production levels in Africa, El Niño weather impacts, and currency movements, notably the Malawian kwacha.

Looking ahead, we have seen a recent turn in European sugar prices. This trend should continue, as European sugar production is estimated to be significantly lower this year and world sugar prices have risen sharply. We expect to see the benefit of higher European market prices in future years.

In a challenging year, the Group has made significant strategic and operational progress that will serve shareholders well when the operating environment starts to improve.

Michael McLintock Chairman

CHAIRMAN'S STATEMENT CONTINUED

A selection of grocery products from some of our businesses around the world

Associated British Foods plc | 7 | Annual Report 2026

CHIEF EXECUTIVE'S STATEMENT

The Group made significant strategic progress in a difficult year. Although financial performance was frustrating in the year, we took significant steps to strengthen our businesses.

Last year we identified three key areas where self-help could improve performance and we continued that work this year.

In Grocery, we acquired Hovis and integration is underway to establish a sustainably profitable UK bakery business. In Sugar, we continued to rationalise our footprint and will move from four to three factories in the UK, enabling us to meet customer demand more efficiently. We are now doing similar in Agriculture, where we are freeing up low-returning capital and concentrating operations on the areas with the strongest growth prospects. And in Primark, our strategy to drive like-for-likes has been successful in the UK and womenswear.

Operationally, the year was rather better. Amidst global supply chain instability, ABF demonstrated once again its resilience by consistently delivering safe, affordable and nutritious food and great value clothing to our customers. It has been harder to do our job this year, but we have done it well.

The context has been challenging. Macroeconomic volatility and external cost pressures reduced profits. Conflict in the Middle East affected the Group through higher energy, freight and other input costs, and extreme weather disrupted some of our operations and agricultural supply chains. Economic insecurity weakened consumer confidence.

Group adjusted operating profit was £1,508m, 14% lower than last year, principally driven by lower profit at Primark. Adjusted earnings per share were down 11%. EPS benefitted from share buybacks. I'm pleased to say that the dividend will be maintained, reflecting the underlying strength of the Group and the Board's confidence in the long-term prospects of

the business.

I was heartened by the way we responded to our challenges.

George Weston Chief Executive

CHIEF EXECUTIVE'S STATEMENT CONTINUED

The proposed demerger will create two focused

Retail Food

businesses, each with the capability, investment

capacity and strategic flexibility to accelerate its own growth agenda.

Across Retail and Food, years of disciplined investment have created strong foundations for future success. These capabilities extend beyond physical assets to include the people, expertise, technology and operational excellence that differentiate our businesses in their markets.

Revenue

Adjusted operating profit

Revenue

Adjusted operating profit

As independent companies, both businesses

will be better positioned to allocate capital, pursue growth opportunities and respond to changing customer and consumer needs.

Number of employees

81,358

Number of employees

57,713

Find out more online at abf.co.uk

Number of stores*

* includes 4 franchise stores

Number of manufacturing sites

Demerger

The most important strategic decision of the year was to demerge Primark from our Food business. ABF has been a brilliant parent to Primark for almost 60 years. In that period Primark has grown into a multi-market business with a powerful global brand, a successful store model, growing digital capabilities and opportunities for further international growth. It will now benefit from having its own governance. For our Food business, separation will enable greater investor understanding of the breadth and strengths of our differentiated portfolio.

We anticipate that Primark and AB Foods will both become FTSE 100 companies and expect the demerger to become effective in December 2027. There is a substantial amount of work underway among central teams and so this will be of little distraction to our businesses.

Primark

Primark has spent the year re-energising its customer proposition and improving its internal organisation. This is important both for future growth and its transition to becoming an independent business.

At last year's full-year results we set out a strategy for driving sustainable like-for-like sales growth based on improving price and price perception, product, customer engagement and digital capabilities. Fundamentally, this is about concentrating on what Primark does best. We have made good progress.

We have unapologetically focused on Primark's largest market and its biggest category: the UK and womenswear. Primark delivered like-for-like sales growth and gained share in the UK, despite a declining market. In womenswear, we have delivered strong sales by investing in better design, improved quality and new ranges, supported by more effective marketing.

Primark is reasserting its position as the leader in disruptive value. Its global 'Iconic Value' campaign reduced prices on hundreds of products while improving style and quality and initial results have been encouraging.

Marketing is becoming more focused and is supported by stronger digital capabilities, including the introduction of the app in several markets and the rollout of Click & Collect across Great Britain. Underpinning this is a clearer understanding of the Primark customer in each of its markets, enabling propositions to be tailored.

The next stage in Primark's digital strategy will be to offer home delivery in Great Britain. We now see this as an incremental profitable opportunity, following developments in the online marketplace and the growing maturity of Primark's digital capabilities. Importantly, this will complement rather than undermine our stores, which remain at the heart of the business. Primark opened its 500th store this year in Pompei, Italy -evidence of its enduring global appeal.

In Europe, we are in the process of rolling out the improvements to our proposition that are in place in the UK, but we have seen an even more challenging consumer environment. Where we have launched initiatives the response has been positive, but much remains to be done. In the US, we are making progress. We opened our flagship Manhattan store, which will accelerate increased brand awareness and is performing well. We know we must do more to localise our offer.

Elsewhere, international expansion remains a substantial opportunity. Primark's first franchise store opened in Kuwait in October last year and I saw for myself queues of more than a thousand customers. Despite the regional conflict, three stores opened as planned in Dubai in the spring, followed by, just after the end of the financial year, stores in Bahrain and Qatar. The performance of franchise stores has been positive and I look forward to the launches in Saudi Arabia and Mexico next year.

CHIEF EXECUTIVE'S STATEMENT CONTINUED

We have also concentrated on giving Primark the right leadership team. We ran an international search process for the CEO position and met a strong range of candidates, so I was pleased to be able to appoint Eoin Tonge as Chief Executive in March. As interim CEO, Eoin demonstrated the leadership, judgement and understanding of the consumer that Primark needs.

We then created the new position of Chief Commercial Officer, bringing together the principal consumer-facing functions into a single role, and Filip Ekvall joined in September, bringing extensive experience of international retail. Eoin has also appointed Lucy Slinger as Chief Financial Officer, who has considerable financial and commercial experience.

Eoin has worked hard this year to improve internal processes, efficiency of decision-making and team structures. Primark is making great progress towards being ready to become a successful standalone business.

Food

The food sector never stands still and this year has been no different. Science and technology are reshaping food production and consumption, while consumer preferences continue to evolve.

Our diverse food Group is well placed to navigate this changing landscape. Optionality gives us resilience and greater opportunity to participate in fast growing sectors within food. Our deliberately devolved operating model, where authority is pushed down close to the customer, gives us the agility to adapt to new trends. This is supported by strong central oversight, a network of connections across the businesses and the expertise that comes from operating across multiple parts of the food supply chain.

This year, we continued to invest in the drivers of our future growth. We expanded capacity through capital projects, accelerated category reach through targeted acquisitions, invested in technology and developed new products in response to changing consumer needs.

First, Grocery. The Grocery portfolio is a broad set of distinctive businesses built around strong brands and market positions where manufacturing capability, routes to market, customer relationships and category expertise give us competitive advantage. We complement established positions with earlier-stage businesses and we have a wide range of opportunities ahead.

This year, performance has been mixed but underlying progress in many of the businesses was good.

In July, we completed the acquisition of Hovis. We expect the integration of its production and distribution facilities will deliver significant synergies that will enable investment in the segments of the UK bakery category that are growing as a result of changing consumer tastes, including healthier options.

On a personal note, having started my career around bakeries, I have enjoyed visiting the Hovis sites and meeting our new colleagues. The Hovis brand is a national treasure which has not received the investment it deserves. We have the opportunity to restore it.

Twinings was affected by unusually hot weather, which reduced demand over the summer, but the business remains strong. It delivered good volume-led growth, supported by product innovation, growing demand for wellness products and success in its e-commerce channel.

Jordans Cereals showed good growth and continued to innovate in response to consumers' growing focus on nutrition. Smaller brands in niche categories also performed well, such as our Sports Nutrition business, which showed impressive double digit growth.

AB World Foods and Westmill both achieved record profits, responding to growing demand for Asian food.

Grocery profit was reduced primarily due to higher IT investments, higher cocoa costs and lower sales in US cooking oil. We will not allow short-term pressures in US oil to lead to long-term damage in this important business.

Turning to Ingredients, our division which brings together two international B2B platforms with distinct opportunities for growth.

AB Mauri, our global yeast and bakery ingredients business, combines large-scale yeast production with a portfolio of specialised bakery ingredients. Its scale and established routes to market provide opportunities to broaden its offering and build specialist categories within large markets.

The business grew well in most of its markets this year, though profit was hit by US consumer weakness. Good progress was made on multi-year capital projects.

ABFI brings together specialist ingredients businesses across food and beverage, health and nutrition and pharmaceuticals. We see significant potential for growth by taking proven science and technology into new applications, customers and geographies.

ABFI sales grew this year and we increased both our geographic reach and commercial capability. The acquisition of Elementis strengthens our position in the growing digestive health market, while the expansion of Ohly's Hamburg plant provides additional capacity and capability.

Results in Sugar were again disappointing. Higher gas prices, surplus supply and low prices in Europe, together with operational and regulatory difficulties in Africa, contributed to a loss this year and a negative outlook for next year.

CHIEF EXECUTIVE'S STATEMENT CONTINUED

We are addressing factors within our control. Our Sugar businesses are becoming fitter and more efficient. The factories in Malawi and Zambia achieved record production and in the UK and Spain we continue to improve efficiency.

The longer-term fundamentals of our Sugar businesses remain attractive. In Europe, there is strong cash generation potential, despite gentle long-term industry volume decline, and in Africa our businesses benefit from growing populations, high market shares and well-branded businesses with good routes to market.

We are well positioned, therefore, to take advantage of a market that is turning. Lower European sugar production and higher global prices should benefit us after 2027.

Like Sugar, AB Agri gives us direct exposure to primary food production. Our Agribusiness actually has its roots in finding markets for British Sugar's beet pulp as animal feed and today uses its expertise in animal nutrition to help make the most of co-products from food production. Agri performed in line with our expectations. We see growth potential in the business continuing to develop higher-value animal nutrition and integrated services for farmers and we are adjusting the operating footprint accordingly.

Investment

In 2026, gross investment was £1.4bn, 15% more than last year. Capital expenditure was £1.2bn and we invested £167m in acquisitions. We have passed the peak of the current investment programme in Food and many of the projects completed in

the year should from now on contribute meaningfully over many years.

The Twazabuka packing facility in Zambia and the new factory in Tanzania will help our Sugar businesses serve growing demand in both markets. Ovaltine's new manufacturing facility in Lagos, its first in Africa, gives the business a stronger base from which to supply Nigeria and the wider West African market.

AB Mauri's new sourdough facility in Northampton will help meet growing demand for specialist bakery products and the recently-completed fresh yeast plant in India will help capture growth in a large market.

George Weston Foods' new bakery in Western Australia and the completed Ballarat flour mill will strengthen capacity and support growth. I'm pleased to see the business continuing to invest in modern, efficient milling capacity.

We have invested extensively in technology and operating efficiency, including enterprise resource planning systems at AB World Foods, ACH, Stratas and Twinings. Although at times expensive and painful to implement, these systems are a prerequisite for our businesses if they are to be efficient. They also allow us to more easily adopt AI tools.

Primark continued to expand and improve its estate while modernising its supply chain. It opened 37 stores and completed refits in 33. The new distribution centre in Newbridge, Republic of Ireland represents an investment of €75m to strengthen Penneys' supply chain. Primark also acquired a highly automated fulfilment centre to support the expansion of Click & Collect and the future introduction of home delivery in Great Britain, so a very significant investment indeed.

Responsible business

Our commitment to responsible business is an integral part of our approach to building sustainable, long-term value. At a time of geopolitical uncertainty, investment in resilient operations, safer workplaces, secure supply chains and the responsible use of resources is increasingly important.

During the year, we strengthened our governance of material ESG matters, made progress in reducing our Group Scope 1 and 2 market-based greenhouse gas emissions and ABF Sugar rebuilt or upgraded a significant number of homes in our African businesses.

Severe weather affected several of our businesses and supply chains during the year, reinforcing the importance of our work to strengthen resilience across our operations. We are reviewing our material climate risks and the actions being taken to manage them.

Primark has been reviewing its Sustainability Strategy, working closely with the central ABF ESG team.

Looking ahead, the demerger will not change our businesses' commitment to operating responsibly, but it may alter the relative materiality of some issues in Primark and AB Foods as standalone businesses. We are reviewing this and will have more to say on this next year.

People and leadership

In March, Joana Edwards was appointed as Group Chief Financial Officer and a full-time member of the ABF Board. As interim CFO, Joana demonstrated a clear understanding of ABF's business and operating model, rigour in the execution of her role as custodian of the Group's finances and a passion for building great teams. Her experience is invaluable.

Looking ahead

The immediate operating environment remains challenging, but we have good reasons to be confident. Across the Group, the investments and decisions made this year are strengthening our competitive positions and preparing the businesses for the future. We remain committed to the approach which has served ABF well: taking a long-term view, investing patiently with discipline and devolving responsibility to capable management teams. Notwithstanding the financial challenges of the year, both Primark and AB Foods are well positioned for the future.

George Weston Chief Executive

OUR STRATEGY AND BUSINESS MODEL

and affordable food, and clothing that is great value for money.

As a Group, we have a clear sense of our social purpose and we work hard to provide safe, nutritious and affordable food, and great-value clothing to millions of customers worldwide every day.

We deliver our purpose through ABF's diverse portfolio of international food, ingredients and retail businesses, which have a significant presence across Europe, the Americas, Australia, Africa and Asia. The way in which we do this is shaped by our strong culture and values, which are lived and breathed across our businesses, whether it is in how we drive our strategies, invest for growth, serve our customers or approach our sustainability priorities.

Our culture is underpinned by our high standards of integrity, recognising that acting responsibly is the only way to build and manage a business over the long term.

We believe that most people are inherently good and that with encouragement, engagement and support they will do the right thing in the right way.

Our people are key to the innovation and action that are needed to deliver our purpose. It is through the skills and capability

of our people that we can make necessary and timely progress. Our employees tend to stay with us for a long time, building exciting careers that help them fulfil their goals at work, at home and in the community.

We pride ourselves on being a first-class employer, working actively to develop our people and create opportunities for progression. Our businesses thrive on the diversity of our people, so we are investing in programmes to help remove barriers to talent. We want to attract, recruit and retain the best people, ensuring they are stimulated by the jobs they do and equipped with the skills they need to succeed.

We strive to protect the dignity of everyone within and beyond our operations.

We continuously learn and incorporate better practices across everything we do, from making products to preserving the resources we rely on.

We proudly promote and protect a culture of trust, fairness and accountability that puts ethics first.

We work with others to enable knowledge and expertise to be shared across the Group.

Find out more online at abf.co.uk

OUR STRATEGY AND BUSINESS MODEL CONTINUED

We take a long-term, patient investment approach to create sustainable growth. We aim to build and acquire long-duration growth businesses that will create value and deliver strong returns.

Our portfolio of clothing retail and food businesses is well positioned for long-term growth through a focus on

categories and sectors with resilient market fundamentals and geographies with favourable demographics. We select opportunities where we can create a competitive advantage to build leadership or niche market positions, typically in moderate-scale categories. Our investment decisions are influenced by strategic patience and we believe our highly-diversified portfolio, across different business activities and geographies, enables discipline and creates breadth in our opportunities for growth. We have designed a devolved operational leadership model that effectively manages

the breadth, mix and long-term nature of our businesses.

Our businesses are typically highly cash generative, which enables continuous reinvestment. We are investing in our well-established, growth-engine businesses to drive expansion into new markets and adjacencies, while nurturing a substantial portfolio of smaller, early-stage

businesses which have the potential to be the next generation of long-duration growth drivers.

Our ability to invest is strengthened by having several mature, lower-growth businesses within the Group that continue to deliver good profitability and cash generation.

Across our portfolio, we are investing to accelerate

growth through effective marketing, innovative new product development and enhanced digital and technology capabilities. This is underpinned by continuous investment to expand our manufacturing capacity and add new capabilities. We are

also investing to deliver our ESG priorities based on the most material risks, opportunities and impacts to the Group. In particular, this includes decarbonisation and social factors within our supply chains. We supplement organic growth with investment in value-creating acquisitions that bring new opportunities and capabilities. We make disposals when judged to be the best route to creating shareholder value.

Our investment approach is grounded in conservative financial management and we maintain a resilient balance sheet. This ensures long-term financial stability and creates the flexibility to fund opportunities as they arise. Our disciplined approach to capital allocation, using risk-adjusted hurdle rates, drives strong returns on capital.

Building

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Investing to drive growth and create competitive advantage

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Conservative

h genera

enables

financial

m nt

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usinesse

continuous r t

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and a resilient balance sheet

Disciplined capital allocation to drive

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Adjusted earnings

per share

156.0p

Dividends

per share

63.0p

(2025: 174.9p) (2025: 63.0p ordinary dividend)

Learn about our strategic performance in our KPIs on pages 16 and 17

Learn about how we reward executives for strategic progress in the

Remuneration Report on pages 120 to 134

Learn about the strategic risks

we manage against on pages 86 to 95

OUR STRATEGY AND BUSINESS MODEL CONTINUED

Retail

Primark is a fast-growing, international value retailer with a differentiated customer proposition delivered through

a digitally-enabled, store-led model. Our strategic priority is to strengthen and re-energise Primark's core customer proposition to drive like-for-like sales growth. It has significant white space to increase its share of consumer spend and extend its presence in existing and new markets through both own stores and franchise partnerships.

We win with customers through our strong brand, known for its disruptive value, combining unbeatable prices with quality, style and an exciting customer experience. We target a wide customer base across women's, men's and kidswear and supporting lifestyle categories such as home and beauty. We are developing clearer category strategies, having started this year with womenswear as our largest and most strategic category. We continuously evolve our ranges to meet customer needs, including through collaborations and licensing partnerships. The execution of our strategy in each market is adapted to reflect the size of the customer opportunity, the maturity of the store portfolio and local customer needs.

We aim to offer a unique store experience by finding the right spaces in the right locations and creating exciting retail destinations. We are investing in brand, marketing and digital capabilities - including our website, stock checker and, increasingly, Click & Collect and social media platforms - to strengthen customer engagement, drive footfall and support like-for-like growth. Our digital strategy is designed to deliver incremental, profitable growth while complementing our store-led model. Primark will offer home delivery in Great Britain in the future, providing the opportunity for a profitable channel for incremental growth that complements our store model. Alongside expansion through our own stores, franchise partnerships provide an asset-light and margin accretive route into new markets. We work to maintain an ethical and responsible supply chain, and we focus on driving efficiencies and cost savings across our supply chain, store portfolio and central operations. We are investing in technology to improve operational performance, drive efficiencies and support longterm growth. We target strong financial returns and cash generation.

Grocery

Our strategy is to drive sustainable growth across our large and diverse portfolio of both international brands and regionally-focused businesses. Growth will continue to be organic and through carefully selected acquisitions.

Our international brands, Twinings, Ovaltine, Patak's, Blue Dragon,

Jordans and Mazzetti, have a long runway for growth. Our focus is on reaching new consumers in existing markets, expanding into new markets and broadening our offer through new product

development. We are investing in effective marketing and innovation to drive category growth and build market share. We benefit from our centralised manufacturing footprint for these brands.

In our regionally-focused businesses in the United Kingdom, North America, Australia and New Zealand, our focus is on driving strong cash generation over the long term. We adopt bespoke strategies to win in local markets. This includes investing in marketing to maintain brand health and support our strong local market positions.

Ingredients

Our strategy is to drive sustainable growth in Ingredients within focused categories, including yeast, bakery ingredients, enzymes, precision extraction, health and nutrition and pharmaceutical delivery systems.

In our yeast and bakery ingredients business, AB Mauri, we are growing our portfolio of products and solutions for industrial, craft and home bakers in our well-established regions of the Americas, Europe and Asia. Our focus is on consistent delivery and innovation for new and existing customers.

This is underpinned by strong, insight-led investment in the development of new technologies and ingredients that will meet the changing needs of our customers in different local markets.

Our individual country businesses are dedicated to their local markets, backed by global expertise in bakery products, technologies and know-how. We are also expanding our portfolio of specialty yeast products and technologies for other industries, including alcoholic beverages and bioethanol.

In our specialty ingredients portfolio, ABFI, we are using science and technology to create value-added, innovative specialty ingredients to serve the food and beverage, health and nutrition and pharmaceutical industries, as well as adjacent markets such as animal feed and certain industrial segments. Our strategic focus

is on niche categories where we can have a differentiated proposition using platforms such as enzymes and other industrial biotechnology, precision extraction and synthetic chemistry. As well as building

on these platforms, we are broadening our geographical exposure to certain developing markets.

We will continue to grow both through acquisitions and organically, including geographical expansion, innovation and new applications.

Sugar

Our strategy is to drive sustainable long-term growth in Africa, building on our strong market positions, while delivering good returns in our European businesses over the cycle.

In our African markets, particularly Zambia, Malawi and Tanzania, growth in sugar consumption is expected to be driven by both population and economic growth. We have strong, attractive consumer brands and continue to build effective routes to market. We are investing to add production capacity in our larger growth markets such as Tanzania and Zambia. Across our markets, we will continue to expand our commercial capabilities, improve our operational effectiveness and strengthen our agricultural practices, which will help to increase cane yields. Over time, we have

opportunities to expand our portfolio of co-products, such as potable alcohol and electricity. We are investing to deliver our ESG priorities, which include sustainable agricultural practices as well as social factors.

In Europe, our strategy is to deliver good profitability and cash generation through the cycle, and to that end we review and restructure businesses in our portfolio when required.

Our businesses focus on long-term customer relationships, built on the high quality of our products and the security of our supply. We also see opportunities to grow our portfolio of co-products, drive continuous operational efficiencies and use data and technology to improve yields and profitability for our growers.

We continue to invest in our ESG priorities, in particular our decarbonisation programme.

Agriculture

Our strategy is to build value-added agri-food businesses, growing organically and through acquisition.

We are expanding our portfolio of innovative, specialty feed ingredients, including feed enzymes and additive products, which we sell globally. We are also growing our integrated dairy business in the UK, connecting data, services and products in new ways

to provide insights to help our customers improve dairy farm performance. We continue to strengthen our position as a market leader in premix and animal feed in the UK and China.

OUR STRATEGY AND BUSINESS MODEL CONTINUED

Devolved operational leadership

Strategic and financial objectives are set from the bottom up

Operational decisions are taken locally by the people closest to their customers and markets

ESG priorities reflect the materiality and impact for the Group and for individual businesses

Central leadership team

Fosters a strong sense of purpose, culture and values, and drives long-term thinking

Co-creates business strategy and maintains continuous dialogue on performance, risks and opportunities

Deploys capital based on a rigorous review of investment returns

Provides central support and creates a framework for Group-wide knowledge-sharing and collaboration Provides central capability and scale in areas such as

IT, treasury and procurement

Oversees business leadership, drives talent development and enables Group-wide career opportunities

Our value chain Our stakeholders

Supply chains

Operations

Products

Employees

Suppliers

Customers/ consumers

Communities and environment

Shareholders and investors

Governments

Our devolved operating model enables us to manage a large and diverse portfolio of businesses. We believe in setting objectives from the bottom up rather than the top down.

Operational decisions are made locally, by the people closest to their customers and markets. Our model enables business leaders to be empowered and accountable, driving innovative thinking and quick decision-making.

The central leadership team fosters a clear sense of purpose, culture and values that runs through our devolved model.

Business leaders are encouraged to be long-term in their thinking and in their approach to investment and value creation.

There is continuous dialogue between the centre and the businesses to co-create strategy, assess operational execution and financial performance, and to review risks and opportunities. The centre takes a rigorous and disciplined approach to deploying capital to ensure investments deliver good returns over the long term.

As well as providing a hub of central support, the centre creates a framework for knowledge-sharing and a culture of collaboration across the Group. This enables us to accelerate change and innovation in response to changing market and consumer trends. The businesses also benefit from the capability and scale at the centre in areas such as IT, cyber security, procurement, treasury, tax and legal.

The central oversight of the business leaders and their teams focuses on the recruitment, retention and development of high-performing individuals, who are able to pursue exciting career opportunities across the Group.

KEY PERFORMANCE INDICATORS

‌We use key performance indicators ('KPIs') to measure our progress in delivering the successful implementation of our strategy and to monitor our performance.

Financial indicators

Group revenue

(£bn)

Adjusted operating profit*

(£m)

Adjusted earnings per share*

(pence)

156.0

174.9

196.9

141.8

131.1

1,508

1,734

1,998

1,513

1,435

19.6

19.5

20.1

19.8

17.0

'22 '23 '24 '25 '26

Revenue is a measure of business growth. Constant currency comparisons are also used to provide greater clarity of performance.

'22 '23 '24 '25 '26

Adjusted profit and earnings measures provide a consistent indicator of performance year-on-year and are aligned with management incentive targets.

'22 '23 '24 '25 '26

The Group's organic growth objective aims to deliver steady growth in earnings over the long term.

Gross investment*

1,355

(£m)

Free cash flow*

(£m)

Net cash before lease liabilities*

(£m)

305

390

1,044

895

1,488

652

648

269

(84)

1,433

1,244

1,281

1,171

930

'22 '23 '24 '25 '26

A measure of the commitment to the long-term development of the business and includes capital expenditure and acquisitions

of businesses.

'22 '23 '24 '25 '26

The free cash flow measure represents the cash that the Group generates from its

operations after maintaining and investing in its capital assets.

'22 '23 '24 '25 '26

This measure monitors the Group's liquidity and capital structure and is used to calculate the Group's liquidity ratio.

Return on average capital employed*

(%)

Financial leverage*

(times (x))

Dividends per share

27.0

12.7

(pence)

1.1

1.0

0.7

1.0

0.8

12.7

15.5

18.1

13.6

14.0

'22 '23 '24 '25 '26

This measure monitors the level of return generated by the Group's investment

in its operating assets. It is also a key part of management incentive targets.

'22 '23 '24 '25 '26

This measure monitors the Group's financial strength to ensure long-term financial stability.

'22 '23 '24 '25 '26

63.0

63.0

63.0

47.3

43.7

The Group's organic growth objective aims to deliver steady growth in dividends over the long term. This included the payment

of special dividends of 12.7p and 27.0p in 2023 and 2024 respectively.

* APMs as defined on pages 216 to 220.

Each business develops KPIs relevant to its operations. These are monitored regularly. In the case of adjusted operating profit and return on average capital employed, we use them as metrics to incentivise our management teams.

KEY PERFORMANCE INDICATORS CONTINUED

Non-financial indicators

Number of Lost Time Injuries and Lost Time Injury

0.41%△

0.41%

0.39%

0.35%

0.36%

(%)

423△

425

392

347

352

'22 '23 '24 '25 '26

A measure of the Group's management of the health and safety of its employees - the number of on-site lost time injuries resulting from an accident arising out of,

or in connection with, on-site work activities and the proportion of the full-time equivalent workforce experiencing a lost time injury.

Read more on page 62

Number of employees and number of countries

'22 '23 '24 '25 '26

Measure of the scale and diversity of our operations. Reflecting all employees in the Group with a contract of employment, whether full-time, part-time, contractor

or seasonal worker and highlighting the number of countries of operation.

Read more on page 64

Percentage of women in workforce

(%)

'22 '23 '24 '25 '26

The proportion of our employees that have disclosed their gender as female/woman in line with the local legislation.

Read more on page 63

ABF Scope 1 and 2 GHG emissions

(000 tonnes of CO2e)

Primark Scope 1, 2 and 3 GHG emissions

60%△

54%

57%

59%

56%

(000 tonnes of CO2e)

Total energy consumed and percentage from a renewable source (GWh / %)

18,472△

18,459

20,697

20,548

20,140

4,765△

6,040

6,288

7,116

6,584

2,079△

2,410

2,627

2,587

2,785

'22 '23 '24 '25 '26

The amount of ABF Group Scope 1 and 2 (market-based) greenhouse gas emissions.

Read more on page 68

'22 '23 '24 '25 '26

The amount of Primark's Scope 1, 2 (market-based) and 3 greenhouse gas emissions.

Read more on page 67

'22 '23 '24 '25 '26

Total energy used and the proportion which is from renewable sources. Renewable energy is mainly generated on our sites from biogenic sources.

Read more on page 67

Primark selling space and number of countries of operation

(000 sq ft)

Total waste generated in own operations and percentage sent for recycling

90%△

94%

94%

92%

93%

(000 tonnes / %)

Total water abstracted in own operations

(million m3)

762△

808

880

859

791

359△

510

499

374

458

19△

20,630△

17

19,510

17

18,759

16

18,198

14

17,302

'22 '23 '24 '25 '26

These two measures represent the retail space growth and breadth of Primark's presence.

Read more on page 23

Selling space Countries of operation

'22 '23 '24 '25 '26

A measure of the total waste generated in our own operations and the proportion of waste sent for recycling or other beneficial use instead of being sent to landfill for disposal.

Read more on page 69

'22 '23 '24 '25 '26

This measure includes water supplied by third parties or from local water resources.

Read more on page 69

‌The Group data in this report on our environmental and safety KPIs covered the period 1 August to 31 July, excluding Primark selling space and number of countries of operation and employee numbers.

△ EY has provided limited independent assurance over the 2026 metrics. See page 146 for EY's assurance report.

OPERATING REVIEW

Primark is an international value retailer with a growing presence across Europe, the US and the Middle East. The business combines

leading value, fashion credibility and operational scale through 508 stores in 19 countries△*

Global disruptive leader in apparel, providing customers with an unmatched value proposition, combining clear price leadership with differentiated quality and exciting fashion

in prime locations

Top-class product engine spanning essentials and fashion, with end-to-end control of innovation, design, licensing, buying and quality, underpinned by industry-leading standards of sustainability and ethical sourcing

Multiple levers to deliver long-term sustainable growth including continued investment in its value proposition, improved product availability, greater digital enablement and increasingly tailored local execution

Exceptional brand strength and proven international expansion strategy, providing a scalable model for growth across existing and new markets through both own stores and franchise partnerships

Well-invested and highly productive store estate underpinned by a scaled, efficient supply chain and lean operating model that delivers strong and resilient margins

Experienced and highly capable team with

a long-term mindset, strong execution capability and a uniquely Primark culture

Cocoon yarn jumper from Primark's Iconic Value campaign

Strong balance sheet with disciplined capital allocation that is focused on driving strong free cash flow and attractive returns

* includes 4 franchise stores in 2 countries

Associated British Foods plc | 18 | Annual Report 2026

OPERATING REVIEW - RETAIL CONTINUED

Primark is a fast-growing, international value retailer with a differentiated customer proposition delivered through

a digitally-enabled, store-led model. It is one of the largest and fastest-growing clothing retailers in Europe, the market leader by sales volume in the UK, and has

a growing presence in the US. Primark is also expanding through franchise stores in the Middle East and Mexico.

We have 508 stores as at the end of the 2026 financial year, with

20.6 million sq ft of selling space△, across 19 countries△ and more than 81,000 colleagues. Our founder, Arthur Ryan, opened our first store in 1969 in Dublin city centre and this remains the home of our global headquarters.

Primark's strong brand is known for offering unbeatable prices and great quality essential clothing and fashion. We target a wide customer base across women's, men's and kidswear, as well as beauty, homeware and accessories. Our licensed clothing ranges are with some of the biggest names in entertainment and sport.

We aim to offer a unique store experience by finding the right spaces in the right locations and creating exciting retail destinations. We use our digital customer experience to drive engagement and increase footfall in stores. This includes our customer website, our stock-checker facility and our

social media platforms. We offer a Click & Collect service from all of our British stores to give customers the convenience to order online before collecting their purchase in store.

Primark's sustainability strategy, Primark Cares, was launched in 2021 with the ambition of making fashion more affordable, more sustainable and accessible for everyone. Since then, Primark has made progress across its commitments, building on its long-standing approach to responsible sourcing and strengthening the resilience of its operations and supply chain.

Primark's new distribution centre in Newbridge, County Kildare, Ireland

In 2026, Primark updated its Primark Cares strategy to reflect the evolving regulatory, technological and consumer landscape, and focused on integrating with the business' growth ambitions. The refreshed strategy focuses on the areas where Primark can have the greatest impact through its products, scale and supply

chain relationships.

Going forward, Primark Cares will be centred on three priorities: circularity, strengthening supply chain resilience and supporting women across the Primark value chain. Through these priorities, Primark aims to drive growth that is both responsible and resilient, creating long-term value for customers, suppliers, colleagues and communities. Further details of the updated strategy will be published next year.

Revenue

2025: £9,489m

Actual currency: up 4% Constant currency: up 2%

Adjusted operating profit margin

10.2%

2025: 11.9%

Return on average capital employed

16.8%

2025: 19.1%

Scope 1, 2 (market-based) and 3 GHG emissions

4,765△

(000 tonnes of CO2e)

2025: 6,040 (000 tonnes of CO2e)

Adjusted operating profit

2025: £1,126m

Actual currency: down 11% Constant currency: down 12%

Operating profit

2025: £1,120m

Actual currency: down 10%

Selling space

20.6m sq ft△

2025: 19.5m sq ft

Gross investment

2025: £530m

Associated British Foods plc | 19 | Annual Report 2026

OPERATING REVIEW - RETAIL CONTINUED

Primark's international expansion reached a significant milestone this year with the launch of its first franchise partnership with Alshaya Group and entry into the Gulf Cooperation Council ('GCC') region, as well as signing a strategic partnership agreement with El Puerto de Liverpool to bring Primark to the Mexican market.

The GCC represents an attractive opportunity for expansion, with a retail market worth approximately £90bn and good existing awareness of the Primark brand among international shoppers.

Working with Alshaya Group, a leading retail franchise operator, Primark openedfour stores in two markets: one in Kuwait and three in the United Arab Emirates.

The first opened at The Avenues, Kuwait, in October 2025, followed rapidly by three in the UAE: Dubai Mall, Dubai City Centre Mirdif and Mall of the Emirates.

Primark's arrival was met with excitement from customers. More than 2,000 queued for the opening of the Kuwait store, with strong demand at the subsequent openings too.

Store performance has exceeded expectations. Dubai Mall quickly became one of Primark's strongest-performing stores in terms of sales. Alongside Dubai Mall, Kuwait and Mall of the Emirates have featured among the top-performing locations in several trading periods. Across the franchise estate, key metrics of average basket valueand units sold per transaction have all been higher than the Primark average.

Top: The opening of Primark's store at The Avenues, Kuwait, in October 2025 Right: Customers queuing for the opening of Primark at Dubai Mall in March 2026

The external backdrop to the UAE openings was challenging due to the conflict in the wider region, with mall footfall and tourism significantly down during this time. However, the knowledge and expertise of Alshaya Group was invaluable in navigating these challenges and minimising impact on supply and operations.

The franchise model is a new approach for Primark that creates the ability to open in new markets with greater speed and at scale while benefitting from the expertise and capability of established local operators. It represents a powerful additional tool for Primark as the business continues to expand.

Following this initial success, Primarkhas since opened stores in Bahrain and Qatar, with plans to open in the Kingdom of Saudi Arabia next year, again along with Alshaya Group, as well as progressing the new franchise agreement with El Puerto de Liverpool to open stores in Mexico.

c.£90bn

value of the GCC retail market

2,000+

customers queued for Kuwait store opening

Associated British Foods plc | 20 | Annual Report 2026

OPERATING REVIEW - RETAIL CONTINUED

Sales summary

Percentage

Like-for-like sales growth Total sales growth

Primark's sales grew 2%. New stores contributed 5% to growth, with good execution across our key growth markets in Europe and the US and through our franchise model in the Middle East. In a challenging consumer environment across most markets, like-for-like sales declined 2.6%. Against this backdrop, we focused on strengthening and re-energising Primark's customer proposition by lowering prices, improving value perception, enhancing our product offer and increasing investment in marketing and digital engagement. In the UK, where these actions are more advanced, we drove much-improved like-for-like sales and gained market share. In continental Europe, where consumer sentiment remained weak and we are at an earlier stage in our commercial recovery and in the development of our capabilities in brand, marketing and digital capabilities, our sales declined. While we delivered good growth from new store openings in the US, it was a difficult retail environment. Overall profit delivery was impacted by the like-for-like sales decline and related markdowns, as well as investments to deliver the improvements in the proposition. Return on average capital employed was 16.8%.

Market summary

In the UK, sales increased 2%, like-for-like sales grew 0.5% and Primark increased its UK market share to 6.9%2. The UK clothing retail environment remained difficult in the year, reflecting cautious consumer sentiment and challenging weather patterns. Our strong relative performance reflects our improved customer proposition and our investment in marketing and digital capabilities taking effect. This includes Click & Collect, which contributed to growth and increased the effectiveness of our marketing investments in driving footfall and sales. Active management of our UK store estate also drove sales growth from store openings, relocations and extensions.

In continental Europe, sales declined 1% and like-for-like sales declined 4.7%. Similar to our actions in the UK, we strengthened our value proposition, improved our in-store execution and began to increase our digital marketing activity. We have also sharpened our focus on our target customer base. While the development of our brand, marketing and digital capabilities is less advanced than the UK, we made progress in the year, as we focus on driving more localised activations.

In Spain and Portugal, combined sales were broadly flat, with good execution of new store openings offset by weak underlying trading. Spain, our largest European market, was a priority for brand and marketing investment and more focused local activation in the year, building on our experience in the UK. In France and Italy, sales declined, reflecting very challenging market conditions and competitor intensity. We have also recently stepped up marketing investment in these markets.

New store openings drove good growth in our newer markets in Central and Eastern Europe. In Northern Europe3, the decline reflects sales weakness in Germany, which has also been a very challenging retail market.

In the US, sales grew 13%. We made good progress with new space expansion, opening 14 new stores. This included a flagship store in Manhattan, which has performed strongly since opening and supports our brand awareness. At the end of 2026, we had 47 stores in total, with an additional 5 leases signed. The US was also a difficult market environment in 2026, principally due to the effect of US tariffs on consumer sentiment, footfall and trading. We have refined our proposition, including adjustments to our category mix and increased product localisation, supported by continued brand awareness activity.

We opened our first franchise stores in the Middle East in 2026, starting with one store in Kuwait and three in Dubai. Despite the disruption in the region, all stores traded well and are ahead of our original plan.

Adjusted operating profit summary

Adjusted operating profit declined 12% to £1,005m and adjusted operating profit margin was 10.2%. This was due to lower like-for-like sales and related higher markdowns and to a significant increase in investment. The investment was across price, product, marketing and digital initiatives to drive like-for-like sales growth and in technology as we build capacity and scale. Foreign exchange was a margin benefit. The cost efficiencies we delivered across our supply chain, store operations and central costs offset inflation.

1. Primark Group includes franchise revenue, which in 2026 comprised three stores in Dubai and one in Kuwait.

2. Kantar, Primark market share of the total UK clothing, footwear and accessories market including online by value, 52-week data to 13 September 2026

3. Our Northern European markets comprise Germany, the Netherlands, Belgium and Austria.

   OPERATING REVIEW - RETAIL CONTINUED

   Capital expenditure summary

   We invested £576m in capital projects in 2026, including new stores in Europe and the US. We opened a total of 33 owned stores in the year: three in the UK, one in Spain, two in Portugal, 14 in the US, two in Germany, five in Italy, two in Poland, one in Czechia and three in Romania. We relocated one store, extended two stores, closed two stores and right-sized three stores. On 12 September 2026, including the four new franchise stores, we were trading from 508 stores across 19△ markets, with 20.6m sq ft of selling space. △

   We also made good progress with our store refurbishment programme, completing refits in 33 stores comprising 1.4m sq ft of selling space. This included the ongoing rollout of self-checkouts that are now in over 330 stores. We continued to invest in our depot network, including the acquisition of a highly-automated fulfilment facility in Sheffield, which will enable Primark to launch home delivery in Great Britain in the future.

   The ongoing build of a new depot in northern Italy will support growth in Europe, as well as improving stock availability and cost efficiencies. In 2026, return on average capital employed was 16.8% compared to 19.1% in 2025.

   Primark's new distribution centre in Newbridge, County Kildare, Ireland

   Strategic and operational summary

   Our strategic priority is to re-energise Primark's core customer proposition to drive like-for-like sales growth and we made good progress in 2026. We are reasserting Primark's position as the leader in disruptive value, combining style and quality with the lowest prices in the market. In July, we invested in new, lower prices across hundreds of key lines while also improving quality, style, fit and the overall shopping experience. We launched these changes across all markets and categories through our 'Iconic Value' campaign to coincide with the arrival of our autumn/winter ranges. The initial customer response has been encouraging everywhere, with positive volume growth in key lines including nightwear, leisure and performance wear.

   At the same time, we are developing more defined category strategies and tailored growth plans. We started with womenswear as our largest and most strategic category. Our strengthened product offer reflects investment in key ranges such as performance wear, the introduction of new collections such as 'By Coleen' and 'The Primark Scene', and an improved, more co-ordinated fashion offer. Womenswear delivered strong like-for-like sales growth in 2026 and outperformed other categories in all markets. We are now applying the same focus and investment to other categories, including a clear strategic plan and overhaul of our kidswear category aimed at creating a simpler, stronger offer.

   To drive customer engagement, we increased investment in brand and marketing. In the UK, our first fully integrated marketing campaigns across channels delivered encouraging results, strengthened brand metrics and increased customer engagement. We also introduced initiatives such as our 'Spotlight' partnerships with local influencers in both the UK and selected European markets, and our 'Major Finds' promotions in all markets, both of which drove footfall in stores and attachment sales. Growth in these initiatives has been supported by continued investment in digital engagement. Our investments in paid media, social media and CRM increased customer engagement, with website traffic growth of 22% in 2026, and contributed to like-for-like sales. The focus is now to extend and scale these initiatives in our European markets as part of our overall plan to drive greater localisation. We have used learnings from the UK, adapted for local market relevance and customer needs, supported by ongoing investment in digital capabilities and assets.

   Primark's digital strategy is to deliver incremental growth and support our strong, store-led model. Click & Collect in Great Britain was a key contributor to like-for-like sales growth, while also driving footfall and attachment sales and increasing the effectiveness of our marketing activations. The next evolution is to offer home delivery in Great Britain in the future. This will enable us to reach new customers and drive incremental growth, in the same way Click & Collect has done. The economics of home delivery have evolved over recent years, including the introduction of return policies, minimum basket sizes and delivery fees as standard, creating an opportunity for us to drive profitable growth through this channel. At the same time, our digital advancements will enable us to maximise the potential of home delivery to accelerate our digital flywheel and drive growth in our store model. In September, we acquired a highly automated depot in Sheffield in the UK, which provides the fulfilment capability and capacity to both offer home delivery and continue growing Click & Collect.

   OPERATING REVIEW - RETAIL CONTINUED

   We have significant white space to increase Primark's share of consumer spend and extend our presence in existing and new markets. There is still a lot of runway to grow in our European markets. Last year saw our highest number of store openings in

   New store openings in the year ended 12 September 2026:

   Company stores

   the US to date. We are clear on our commercial strategy in the US and we have sharpened our understanding and focus on our key target customer. We will now focus on consolidating our position and driving growth across our enlarged footprint through our new commercial plan for the near to medium term before we expand again. Alongside expansion through our own stores, our franchise partnerships are an asset-light and margin-accretive route into new markets. Since year end, we have opened stores in Bahrain and Qatar and we have a strong pipeline for the Middle East. In particular, we have expanded our partnership with Alshaya Group to include the Kingdom of Saudi Arabia and expect to open the first store in spring 2027. We also signed an agreement with El Puerto de Liverpool to open franchise stores in Mexico and we are actively exploring the first locations.

   Looking ahead, our vision is to 'Build a Better Primark': a stronger, simpler and more scalable business that creates longterm value for customers and shareholders. Growth will come from our strengthened customer proposition, deeper category strategies, increased investment in brand, marketing and digital, improved availability and more locally relevant market propositions. We will continue to expand our store estate and grow through franchise partnerships. We also see a significant opportunity to develop an omnichannel operating model, starting in the UK. We are actively assessing the omnichannel opportunity in Europe. Underpinning this will be a focus on simplifying our operating model, strengthening our supply chain and using technology, automation and data to improve productivity and effectiveness at scale.

   Leadership appointments

   ‌A number of leadership appointments were made in 2026 to enable Primark to deliver its long-term growth ambitions and to transition to be a standalone listed entity following the demerger of Primark from ABF in December 2027.

   In March this year, we announced the appointment of Eoin Tonge as Chief Executive of Primark, having served as Interim Chief Executive. In September, this was followed by Filip Ekvall joining in the newly-created role of Chief Commercial Officer and Lucy Slinger joining as Chief Financial Officer.

   UK

   • Epsom, The Ashley Centre

   • Tunbridge Wells

   • Weymouth

     Spain

   • Talavera

     US

   • Castleton, IN, Castleton Square

   • Franklin, TN, CoolSprings Galleria

   • Miami, FL, Dolphin Mall

   • Gurnee, IL, Gurnee Mills

   • New York, NY, Herald Square

   • Grapevine, TX, Grapevine Mills

   • Houston, TX, Katy Mills

   • Bloomington, MN, Mall of America

   • Hyattsville, MD, Mall at Prince George's

   • Hurst, TX, North East Mall

   • Arlington, TX, The Parks at Arlington

   • Lawrenceville, GA, Sugarloaf Mills

   • Orlando, FL, Vineland Premium Outlets

   • Houston, TX, Willowbrook Mall

     Germany

   • Regensburg

   • Rostock, Ostee Park

   	Year ended 12 September 2026			Year ended 13 September 2025
   	# of stores	sq ft 000		# of stores	sq ft 000
   UK	199	7,991	197		7,907
   Spain	68	2,706	67		2,692
   US	47	1,746	33		1,304
   France	30	1,469	30		1,469
   Germany	28	1,379	27		1,380
   Republic of Ireland	38	1,198	38		1,175
   Italy	24	1,059	19		896
   Netherlands	19	903	19		903
   Portugal	15	514	13		487
   Belgium	8	403	8		403
   Poland	9	318	7		267
   Austria	5	242	5		242
   Romania	7	239	4		147
   Czechia	4	152	3		119
   UAE*	3	131	-		-
   Kuwait*	1	61	-		-
   Slovenia	1	46	1		46
   Slovakia	1	39	1		39
   Hungary	1	34	1		34
   	508	20,630△	473		19,510

   Store footprint

   Italy

   • Biella, Gli Orsi

   • Cremona, CremonaPo

   • Naples, Grande Sud

   • Naples, La Cartiera

   • Parma, Parma Promenade

     Portugal

   • Setúbal, Alegro

   • Castelo Branco

     Poland

   • Koszalin, Forum

   • Lublin, Felicity

     Romania

   • Craiova, Electroputere Mall

   • Iași, Palas

   • Sibiu, Shopping City Sibiu

     Czechia

   • Ostrava

     Franchise stores

     Kuwait

   • Kuwait City, The Avenues

     United Arab Emirates (UAE)

   • Dubai, Mall of the Emirates

   • Dubai, Mirdif City Centre

   • Dubai, The Dubai Mall

     * Franchise stores

     OPERATING REVIEW - RETAIL CONTINUED

     Driving growth in womenswear through category investment and customer engagement

     Womenswearis Primark's largest category andthe cornerstone of its product offer. The ranges are central to brand strength and a key performancedriver, making them a priority as Primark reaffirms

     its great value credentials with customers.

     During the year, Primark continued to strengthen its womenswear proposition through an improved product offer, a sharper focus

     on price and value and an increased emphasis on customer engagement.

     Product innovation remained key. Primark launched and expanded successful ranges such as Primark Scene and Performance, as well as increasing its co-ordinated fashion offer, giving customers more choice and even better style. Work also continued to improve fit and sizing.

     Investment innewfashion-focused partnerships with strong social and creator activation is helping to broaden Primark'sreach and drive incremental sales. With the debut 'By Coleen' collection, Primark delivered strong global sales and set a new Click & Collect record, with 31% of purchases in the first two weeks of sale coming from new Click & Collect customers. Another initiative, 'Spotlight', which sees Primark partner with locally relevant influencers, launched in the UK and Ireland with fashion influencer Perrie Sian.

     It delivered strong results, and significantly expanded Primark's reach, with 77% of Instagram activity and 98% of TikTok activity coming from non-followers.

     To reach more customers, the year saw the launch of three integrated marketing campaigns promoting Primark's womenswear offer, designed to reach new and existing customers. These included 'In Denim We Can', for women's denim last autumn, and 'Shockingly Chic' in spring, promoting the new co-ordinated fashion offer, followed by 'The Get Away' which introduced Primark's summer collection across the UK and US and was also Primark's first fully integrated campaign in Spain.

     Commercial results across these campaigns were very encouraging, resulting in an 8% year-on-year uplift in Primark's market share in women's denim, Primark's highest market share in women's denim in two years. 'Shockingly Chic' also performed strongly, particularly in the UK, Ireland, France and Italy, with sales ahead of expectations.

     Following the success of these initiatives in driving like-for-like sales, Primark intends to roll them out further in other markets.

     31%

     of initial purchases from the debut Coleen Rooney collection came from new Click & Collect customers

     8%

     year-on-year increase in Primark's market share in women's denim

     Coleen Rooney modelling the Tie Back Poplin Shirt from her first 'By Coleen' collection at Primark

     Associated British Foods plc | 24 | Annual Report 2026

     OPERATING REVIEW - RETAIL CONTINUED

     Progress update

     The Primark Circular Product Standard

     Informed by three years of learning, testing and collaboration, Primark launched its updated Circular Product Standard this year. The revised framework provides a clear and practical approach to circular design that is replicable at scale, and grounded in affordability, by designing for durability and recyclability, and with preferred materials.

     As of July 2026, 6% of all Primark's clothing unit sales are circular by design, meeting the 'Foundational' criteria set out by our Circular Product Standard. Within its focus categories, 21% of all jersey and 15% of all denim clothing unit sales are now circular by design.

     ESG at Primark

     • In 2026, Primark has been reviewing its approach to ESG. Its updated Primark Cares strategy will centre around its strengths as a business: its products, its scale and its reach

       across the supply chain. It will concentrate on three priorities:

       circularity4, supply chain resilience, and supporting women across the Primark value chain. Primark will publish its updated strategy next year.

     • Primark is committed to respecting human rights throughout its supply chain. In the 2025 calendar year, Primark conducted over 2,300 Supplier Code of Conduct audits in its supplier factories, most of which were unannounced, supporting its continued risk-based, worker-centric approach to human rights due diligence in its supply chain.

     • In 2026, 81%△ of clothing units sold by Primark contained recycled or more sustainably-sourced materials (recycled polyester, recycled polyamide/nylon, recycled acrylic, recycled cotton, cotton from the Primark Cotton Project, Cotton made in Africa, Organic Cotton, viscose, modal and lyocell)5.

     • In 2026, 64% of cotton clothing unit sales contained cotton from Primark preferred sources (cotton from the Primark Cotton Project, recycled cotton, organic cotton and Cotton made in Africa)5.

     • Through its Primark Cotton Project, the business provides farmers with agronomic training in more regenerative agricultural practices. During the year, the Primark Cotton Project transitioned to CottonConnect's REEL Regenerative Standard, which provides additional independent verification of farming and ginning practices against the

       A cotton farmer from the Primark Cotton Project in Gujarat, India

       standard's requirements.

     • Primark's Scope 3 GHG emissions, which represent 99% of its GHG footprint, decreased by 21% compared to 2025. This represents a 24% decrease against its 2019 baseline. These reductions were achieved through a decrease in supplier GHG emissions, improved availability of primary data from supplier factories and greater use of recycled or Primark preferred sources5. The decrease in supplier GHG emissions resulted from increased use of renewable energy, wider

   industry and supply chain decarbonisation initiatives, continued Primark investments in capacity building and site-specific action plans for supplier decarbonisation.

   Read more about ESG initiatives at Primark on our website at https://www.abf.co.uk.

4. For Primark, circularity means working towards a system where clothing is kept in use for longer and textiles are used again, reducing waste and reliance on virgin resources. Primark's approach is informed by the Ellen MacArthur Foundation's 'vision of a circular economy for fashion', in which products are 'used more, made to be made again, and made from safe and recycled or renewable inputs'.

5. https://corporate.primark.com/en-gb/a/news/sustainability-and-ethics-news/understanding-the-fibres-in-your-clothes

   Associated British Foods plc | 25 | Annual Report 2026

   OPERATING REVIEW - RETAIL CONTINUED

   Primark's new distribution centre in Newbridge, County Kildare, Ireland

   Associated British Foods plc | 26 | Annual Report 2026

   OPERATING REVIEW - RETAIL CONTINUED

   Increasing the focus on digital, including the Primark app

   Primark continued to step up its investment in digital capabilities this year as part of its strategy to support long-term growth, drive customer engagement and make shopping easier.

   April 2026 saw the launch of the Primark app in the UK, Primark's biggest market. The app brings the Primark experience directly to customers: shoppers can explore trends, check stock availability, save favourites, receive personalised notifications and use the store locator to plan their visits.

   The app also integrates with Primark's Click & Collect service, creating a seamless shopping experience and helping drive customers to stores. Early adoption has been encouraging, with the app reaching number one in the UK App Store on three occasions since launch and accounting for 9% of Click & Collect sales within days of launch and around 15%

   by the year end. Stock checker usage -which is a strong purchasing signal -has also been robust, with on average 29.5% of app users in the UK using it since launch.

   The collective power of these digital investments, which also encompass Primark's website, customer relationship tools and owned channels, is working to create a digital ecosystem that fuels growth: greater customer engagement generates richer data, which enables more personalised communications, helping to drive in-store footfall and sales.

   While Primark remains a store-led retailer, its broader digital investment strategy is an important focus area. Click & Collect continues to grow strongly, with underlying Click & Collect sales per store growing by 84%year-on-year. In September, Primark announced plans to offer home delivery in Great Britain in the future, giving customers more choice in how they shop with Primark and helping Primark to reach new customers and give existing customers another convenient way to access the products they love.

   84%

   year-on-year increase in underlying Click & Collect sales per store

   Primark's first UK customer-facing mobile app gives shoppers digital access to its Click & Collect service for the first time

   Associated British Foods plc | 27 | Annual Report 2026

   OPERATING REVIEW

   ‌Food

   ABF's Food business operates across global food, ingredients and agriculture markets.

   Together they serve customers in 52 countries through a diversified portfolio of brands, products and services.

   Key strengths

   A differentiated, global food portfolio constructed to operate across the food supply chain, in order to benefit from structural trends driving future food demand

   Strong and innovative brands and ingredients platforms, targeted at sharply defined market segments, with a well-invested asset base

   A focus on long-term earnings growth delivered through a mix of long duration growth and cash generative businesses

   A devolved and networked operating model with central oversight supporting local decision-making by those closest to customers and markets, a formula which attracts and retains exceptional talent

   A strong balance sheet and significant cash generation which enables long-term, disciplined investments to build businesses and brands

   Grocery products from some of our businesses worldwide

   A deeply embedded culture of sustainability and responsible behaviour which focuses on the most material risks and opportunities for its businesses and the communities in which it operates

   Our operating businesses

   Grocery

   See page 30

   Ingredients

   See page 34

   Sugar

   See page 38

   Agriculture

   See page 42

   Associated British Foods plc | 28 | Annual Report 2026

   OPERATING REVIEW - FOOD CONTINUED

   Food Highlights

   Revenue

   £9,323m

   2025: £9,242m

   Actual currency: up 1% Constant currency: down 1%

   Adjusted operating profit margin

   6.8%

   2025: 8.1%

   Adjusted operating profit

   £637m

   2025: £752m

   Actual currency: down 15% Constant currency: down 17%

   Operating profit

   £470m

   2025: £473m

   Actual currency: down 1%

   AB Foods is a different kind of food group, built by design: a broad portfolio of strong businesses, close to their markets, with the freedom to act and the capacity to keep investing. We operate in defined market segments throughout the food supply chain, giving us breadth, resilience and multiple sources of growth. Our businesses are united by a common purpose to help provide safe, nutritious and affordable food and support food security.

   We build our portfolio deliberately and not every business plays the same role. Some deliver strong returns from leading market positions; others provide scale and cash; and some are earlier-stage businesses for future growth. We invest patiently and with discipline to build businesses with a long-term future, focusing on markets we understand and opportunities where we are confident we can win and see the potential for attractive returns.

   We have significant opportunities for growth, from growing established brands into new categories, channels and markets;

   to scaling higher value brands and specialist ingredients;

   Employee numbers

   57,713

   2025: 54,801

   Scope 1 and 2 GHG emissions (market-based)

   2,033

   (000 tonnes CO2e)

   2025: 2,364

   (000 tonnes CO2e)

   Gross investment

   £844m

   2025: £731m

   Manufacturing sites

   178

   2025: 174

   investing in emerging niches; adding capacity where demand supports it; and improving operational effectiveness.

   We have built positions of strength across our portfolio, underpinned by scale, leading market shares, trusted brands, customer relationships and specialist capability. These advantages provide a strong base for growth over the long term.

   Food has always been a dynamic industry and not every change can be predicted. Tastes shift, new categories emerge and technology changes how food is produced and consumed. At the same time, longer-term forces such as population growth, rising incomes and greater focus on health will shape different parts of the market in different ways. We are not built around any single trend, but we have a strong track record of finding opportunities as markets evolve. That ability comes from the way AB Foods is built, which helps the Group stay resilient, respond to new opportunities and to keep growing over time.

   A small selection of our grocery products

   OPERATING REVIEW

   ‌Grocery

   Grocery comprises brands which occupy leading positions in markets across the globe.

   Highlights

   Revenue

   £4,237m

   2025: £4,125m

   Actual currency: up 3% Constant currency: up 2%

   Adjusted operating profit margin

   10.1%

   2025: 11.6%

   Return on average capital employed

   26.0%

   2025: 31.5%

   Adjusted operating profit

   £427m

   2025: £478m

   Actual currency: down 11% Constant currency: down 11%

   Operating profit

   £383m

   2025: £424m

   Actual currency: down 10%

   Packaging

   148kt

   2025: 149kt

   International brand businesses

   Twinings has been blending tea since it was founded in 1706 and its premium teas and infusions are now sold in more than 120 countries. Ovaltine malted beverages and snacks are consumed throughout the day in countries across the globe. Patak's is the original spice blending expert and is recognised around the world for creating authentic Indian food that is quick and easy to prepare. Jordans produces delicious wholegrain breakfast cereals. Blue Dragon offers authentic, simple and convenient ingredients to create delicious dishes from China,

   Thailand, Japan and Vietnam. Mazzetti is our leading brand of Balsamic Vinegar of Modena.

   US-focused businesses

   We have some of the leading US, Mexican and Canadian cooking and baking branded products. These include Mazola and Capullo cooking oils and Fleischmann's yeast. In addition, Anthony's Goods is a leading brand of organic and natural ingredients and superfoods which are sold online in the US. We also have a 50% ownership in Stratas Foods*, the leading US supplier of packaged oils, margarines, mayonnaise, sauces and dressings for the foodservice, food ingredients and

   retail markets.

   UK-focused businesses

   We have a broad set of food brands and businesses focused

   on the UK market. Hovis and Kingsmill produces a range of

   Recycled waste

   85%

   2025: 86%

   Gross investment

   £270m

   2025: £226m

   bakery products for the whole family. Dorset Cereals' award-winning muesli and granolas are renowned for the quality of the ingredients. Ryvita is the UK category leader in crispbreads.

   Silver Spoon and Billington's are our two retail sugar brands in the UK. We are also a leading supplier to the Indian, Chinese and Thai foodservice sectors with well-known brands, including Lucky Boat noodles.

   Australia and New Zealand-focused businesses We are one of Australia and New Zealand's largest food manufacturers. Tip Top is one of the most recognised brands

   For a full list of our businesses and brands visit

   https://www.abf.co.uk/our-businesses/a-z-finder.

   * Safety and environment data (or ESG data) is reported for companies

   over which the Group has control as described on page 58. Data from joint ventures, associates and other entities that the Group does not control is therefore excluded.

   in Australia with an extensive range of bread and baked goods. The Artisanal Group is a leading manufacturer and wholesaler of high-quality baked goods. Our Don business manufactures a variety of bacon, ham and meat products. Yumi's produces hommus, vegetable dips and snacks and is the leader in the Australian market.

   Quality testing at Twinings'

   manufacturing facility in Poland

   OPERATING REVIEW - GROCERY CONTINUED

   Operating review

   Financial summary

   Grocery sales grew 2%, primarily reflecting the consolidation of Hovis. Growth across a number of our brands was offset by lower sales of US oils. Grocery adjusted operating profit declined 11% to £427m and adjusted operating margin was 10.1%.

   This was primarily due to US consumer pressures driving a decline in our US oils businesses as expected, including a lower profit contribution from our joint venture, Stratas.

   We invested £270m in capital projects across Europe, Australia and Africa to support future growth. Return on average capital employed was 26.0%.

   Business summary

   Within our international brand businesses6, sales growth in Twinings was driven by strong product innovation, increased investment in marketing, focused in-store execution and the expansion of e-commerce sales. We continued to build momentum across our growing portfolio of wellness teas, including the successful launch of new cold range products in Australia, leveraging our strong heritage and market position in black tea. Overall growth in Twinings was held back by lower sales in the UK and France due to the long, hot summer reducing hot tea consumption. During the year, we completed a number of capital projects to support growth in Twinings through increased capacity, efficiency and capabilities. We also completed the implementation of a new ERP system, which supports future growth but significantly increased amortisation in the year.

   Ovaltine had a mixed performance by market and profitability was also impacted by higher cocoa costs and the phasing of sales in Thailand as we changed to a new distribution model. We continued to drive product innovation and increased marketing investment. The new manufacturing facility we commissioned in Nigeria will support growth in West Africa. Our other international brands performed well, with Blue Dragon, Jordans and Mazzetti all delivering strong sales growth supported by good innovation. We completed a capacity expansion project for Blue Dragon, which will support continued international growth.

   Within our US-focused businesses7, sales and profits declined in our consumer oils businesses, as expected. In Mazola, this was due to a decline in the cooking oil category and in particular, our core Hispanic consumer base reducing their expenditure. We remained the number one brand and stayed well-invested in targeted promotional and marketing activities to support Mazola's leading market share and strong brand equity. Our joint venture, Stratas, a leading supplier of oils and other products to the foodservice, ingredients and retail markets, delivered a lower contribution to operating profit, primarily due to pressures on customer expenditure leading to reduced demand for out-of-home eating and their margins were lower.

   Within our UK-focused businesses7, our sports nutrition business delivered strong double-digit sales growth and Ryvita delivered improved results following our restructuring actions last year. In July we completed the acquisition of Hovis Group Limited. We are progressing at pace with the integration of its production and distribution facilities with our bakeries business. This includes the announced closure of one of Hovis' bakeries, Forest Gate, which gave rise to £15m of exceptional charges, the majority of

   which were closure and restructuring costs. We expect to drive significant cost synergies to invest in marketing and innovation and create a sustainably profitable bakeries business.

   In our Australia and New Zealand-focused businesses7, sales of Tip Top bread and Don meats were resilient, while The Artisanal Group, which sells high-quality baked goods to cafes and restaurants, was more impacted by the challenging consumer environment. In 2026, we commissioned our new bakery line in Western Australia to add capacity and increase efficiency, supporting long-term growth in a state where Tip Top is the leading supplier.

   ESG at Grocery

   ESG highlights

   • Within the Grocery segment there are an extensive number of social and environmental programmes relevant to the individual businesses. To find out more about the progress being made across these businesses please see our website.

   • In particular, Twinings Ovaltine's due diligence approach includes audit procedures and training to support the implementation of its Code of Conduct and Human Rights Policy. These include its Factory Monitoring and Improvement Programme ('FMIP'), the Twinings Community Needs Assessment ('TCNA') programme and Modern Slavery Awareness training.

   Read more about ESG initiatives of our Grocery businesses on our website at https://www.abf.co.uk.

   Tea workers at a tea estate

   in Assam, India

6. Our international brand businesses, which include Twinings, Ovaltine, Blue Dragon, Patak's, Jordans and Mazzetti, accounted for approximately a third of total Grocery sales.

7. Within our regionally-focused brand businesses, US-focused businesses accounted for approximately 15% of total Grocery sales, while UK-focused businesses and Australia and New Zealand-focused businesses each accounted for approximately 25% of total Grocery sales.

OPERATING REVIEW - GROCERY CONTINUED

Ovaltine's new production facility in Lagos, Nigeria, became fully operational in April 2026. It is the

business's first owned manufacturing facility in West Africa and a key enabler to achieving Ovaltine's growth ambitions in the region.

By investing in domestic infrastructure, Ovaltine is now able to service its customers more cost-effectively and four times quicker than before. As well as investing in a state-of-the-art vacuum band dryer, one of only three brands in Nigeria to have this capability, it has also invested in its people; Ovaltine now has 110 full-time employees in the country to support its operations, including a larger sales team to help drive its routes to market with its distribution partners.

The facility can deliver end-to-end powder production, from raw materials through to finished goods. This is complemented by

an automated delivery system to support its four packing lines. It manufactures three different formats, available in seven sizes from single serve 18g and 30g sachets, through to multi-serve pouches and tins from 350g up to 1.2kg.

These investments mean Ovaltine, the fifth largest brand in Nigeria, is well-placed to grow its current 6% market share of the country's chocolate beverage market. The category has 95% household penetration in Nigeria, making these products a consumer staple for Nigeria's 220 million population, which is growing 2% year-on-year.

Capacity expansion has therefore been built into the facility's plans, with the ability to increase production up to 500% to meet potential demand. It was important to incorporate this expansion capability into the construction phase, as not only does Ovaltine's Lagos factory

service the domestic market but it also exports finished goods to eight West African countries: Cameroon, Ghana, Guinea, Ivory Coast, Liberia, Senegal, Sierra Leone and Zambia. This export business represents 17% of the business today, with huge potential for growth.

With a good understanding of consumer needs and a winning product, serviced by this new facility and better routes to market through strategic distributor partnerships and consumer activation, Ovaltine is strongly positioned to significantly grow its West Africa market share in the coming years.

potential production increase at the facility

population of Nigeria, growing 2% year-on-year

Above: The vacuum band dryer used to dry powder at Ovaltine's new manufacturing facility in Lagos, Nigeria Top right: Ovaltine packaging used in the

Nigerian market

Associated British Foods plc | 32 | Annual Report 2026

OPERATING REVIEW - GROCERY CONTINUED

As an international wellbeing drinks brand, Twinings is passionate about innovating to create teas and infusions which are enjoyed by and accessible for all. Increasingly, its approach to e-commerce is helping to make that a reality, deepening consumer relationships while accelerating

sales growth.

Blue Dragon, our international brand which helps people recreate authentic east Asian dishes at home, grew revenues (net sales value) 10% year-on-year in the UK and recorded strong, double-digit year-on-year performances across several other markets worldwide.

Amazon is the largest e-commerce platform for the tea category both in the UK and the US. This year, Twinings was the number one tea brand on Amazon in the US, while in the UK it is the number one brand in the hot healthy category. In both markets, Twinings' retail sales by value have doubled in the last five years.

Twinings has achieved this through a multi-faceted consumer-driven strategy, focusing on targeted advertising and promotion with an e-commerce-first approach to both content and

pack architecture.

It creates Amazon-specific static and video assets to help ensure its digital shelves deliver an exceptional consumer experience. Accurate, complete and consistent product descriptions in turn support the platform and AI search, making the right products discoverable and prominent.

The nature of the digital shelf means Twinings is able to showcase on Amazon the entire breadth of its portfolio, complementing its core range with bespoke offerings, from gift packs and advent calendars to bulk offerings. Ultimately, the right products, in the right sizes, at attractive prices, all indexed and showcased in the right way.

Twinings' market-leading positions are reflected in its consumer reviews, driving brand trust and loyalty. As Amazon's share of this category continues to grow, this represents a significant opportunity for Twinings in both markets and it is also building on this success to expand its Amazon capabilities in Australia, France, Italy, Canada and India.

tea brand on Amazon in the US

Founded in 1977, Blue Dragon offers an expanding range of authentic pan-Asian products and ingredients through a combination of in-house manufacture and a largenetwork of long-standing Far Eastern suppliers.

In the US, a key strategic market, Blue Dragon grew revenues by over 30% this year and is increasing its presence in key mainstream retailers such as Walmart, Albertsons, Kroger and Publix, while it recently became the number three pan-Asian brand in Canada.

In the UK, Blue Dragon had grown its market share to more than 17% at the year end and is the largest pan-Asian ambient grocery brand. Building on strong existing customer relationships, this growth has been driven by deep category insights and a very strong pipeline of innovation, including the recent launch of the very popular Blue Dragon Chilli Crunch.

Across its ranges this year, Blue Dragon launched 15 new products with Tesco and introduced a variety of new formats to supermarkets, including a branded stir fry meal deal with Morrisons, a chilled ready meal at Tesco and frozen propositions across several retailers.

Other innovations included a new rangeof 'condiments with a kick' to complement Blue Dragon's leading iconic sweet chilli sauce and a range of ready-to-eat microwavable meals.

These initiatives were supported with a TV advertising campaign, as well as by a variety of social media campaigns and the use

of influencers.

This focus on innovation is a key part of ABF's strategy to drive category growth and build market share in our portfolio of international brands.

Twinings' digital shelf for Amazon in the United States

growth in US revenues

A selection of ready-to-eat products sold by Blue Dragon in the UK

Associated British Foods plc | 33 | Annual Report 2026

OPERATING REVIEW

Ingredients businesses comprise yeast and bakery ingredients, as well as a portfolio of specialty value-added ingredients primarily focused on enzymes, precision extraction, health and nutrition and pharmaceutical delivery systems.

Revenue

2025: £2,041m

Actual currency: up 3% Constant currency: up 2%

Adjusted operating profit

2025: £257m

Actual currency: down 7% Constant currency: down 8%

Yeast and bakery ingredients

We have a global yeast and bakery ingredients business, AB Mauri, with well-established market positions in the Americas, Europe and Asia. We sell our products to customers in over 100 countries, operating from 55 plants across 32 countries and we have over 6,300 employees.

We work with industrial and craft bakers to develop leading yeast solutions and bakery ingredients that are right for the needs of their local markets. We have strong technological capabilities in bakery ingredients, supplying a range of products

including bread improvers, dough conditioners and bakery mixes

Adjusted operating

profit margin

11.3%

2025: 12.6%

Return on average capital employed

15.0%

2025: 17.9%

Operating profit

2025: £243m

Actual currency: down 7%

Water abstracted

2025: 15 million m3

and concentrates for bread, cake and dough products. In addition to bakers' yeast, we supply specialty yeast products and associated technologies to the alcoholic beverage and bioethanol markets.

Specialty ingredients

We have a portfolio of specialty ingredients businesses,

ABF Ingredients ('ABFI'), that use science and technology

to create value-added, innovative ingredients to serve the food and beverage, health and nutrition and pharmaceutical industries, as well as adjacent markets such as animal feed and certain industrial segments. We use platforms such as enzymes and other industrial biotechnology, precision extraction and

synthetic chemistry.

We have over 1,500 employees and serve customers in

Scope 1 and 2 GHG

emissions (market-based)

(000 tonnes of CO2e)

2025: 221 (000 tonnes of CO2e)

Gross investment

2025: £238m

more than 70 countries from manufacturing and R&D facilities in 14 countries across Europe, the Americas and Asia Pacific.

In the food and beverage sector, we develop ingredients and solutions that support product innovation. In the health and nutrition sector, we develop ingredients that provide a

A quality control team coordinator prepares samples for testing at Ohly's plant in Hamburg, Germany

health benefit in dietary supplements and functional food and beverage. In the pharmaceutical sector, we produce antacids, excipients, adjuvants and delivery systems that enter the formulation of drugs.

ABFI is comprised of AB Enzymes, Ohly, Biotexia, ABITEC Corp, SPI Pharma and PGP International.

Mauri ANZ

Mauri ANZ is an ingredient company with production and milling capacity in Australia and New Zealand. Our product portfolio includes a range of flour products, yeast and bakery ingredients, as well as animal feed mixes.

New Food Coatings

We have a 50% ownership in New Food Coatings*, one of the leading suppliers of customised breaders, batters, seasonings, sauces and functional ingredients to the food manufacturing and foodservice markets across Australia, New Zealand

and south east Asia.

* Safety and environment data (or ESG data) is reported for companies over which the Group has control as described on page 58.

OPERATING REVIEW - INGREDIENTS CONTINUED

Ingredients sales increased 2%, adjusted operating profit decreased by 8% and adjusted operating margin was 11.3%, primarily reflecting weakness in demand for bakery ingredients in the US market and continued investment in innovation and commercial capabilities to drive long-term growth in specialty ingredients. We invested £245m in capital projects and return on average capital employed was 15.0%.

In our yeast and bakery ingredients business, AB Mauri, profit declined. This was mainly due to our US business, where weaker consumer spending drove lower customer demand for our products. There was also subdued demand from customers who use our specialty yeast products in alcohol beverages. Most of our other markets and categories performed well as we continued to leverage our strong routes to market, broad product portfolio and good innovation in bakery ingredients. We made good progress with multi-year capital projects to drive growth in new products and markets. This includes the full production

start-up of our liquid sourdough plant, which is the largest in the UK and strengthens our capability in an important and growing market segment. We made good progress with the ongoing commissioning of our fresh yeast plant in India, a high-growth market.

Part of the AB Mauri effluent treatment system in Bandrima, Türkiye

In our specialty ingredients businesses, ABFI, the portfolio performed well overall. In our pharmaceutical businesses, we had good growth in our antacid, excipient and vaccine-related product lines, partially offset by lower lipid sales. Our businesses in the food and beverage, and health and nutrition markets delivered good growth in yeast extracts, enzymes and extruded protein crisps. Across the portfolio, we continued to invest in R&D, commercial capabilities and strategic capital projects to drive long-term growth. During the year, we completed multi-year projects to add new capacity for our yeast extracts business in Germany and new enzyme blending capability in Finland. Our pharmaceutical business, SPI Pharma, acquired Elementis Pharma GmbH to strengthen its position in actives and expand its offering in digestive health.

In our ingredients business in Australia and New Zealand, Mauri ANZ, performance was resilient. In 2026, we completed a multi-year project to relocate our flour mill in Victoria. In line with increasing demand, this will enable us to double our

production volumes.

New Food Coatings, our joint venture in Australia, New Zealand and south east Asia, specialising in seasonings, sauces and ingredients, continued to grow.

ESG highlights

• AB Mauri has demonstrated significant progress in effluent treatment through robust governance, enhanced transparency and a strategic focus on risk management. Since 2010, the division has invested $160m in improving its wastewater treatment facilities. Production facilities in several locations have on-site effluent treatment plants that include conventional and advanced biological processes, high pressure membranes and evaporators that can produce reusable water and useful co-products.

• In 2026, our Ingredients businesses consumed 1,404 GWh of energy, a 6% increase compared to 2025, driven by higher production volumes and a more energy-intensive product mix. While energy use increased, the Scope 1 and 2 (market-based) GHG emissions decreased by 1% compared with 2025, primarily due to increased use of renewable energy.

• In 2026, 79% of our Ingredients businesses' waste was recycled, recovered, reused or sent for another beneficial use. The businesses undertook a range of initiatives to manage waste, including recycling paper and plastics and repurposing waste streams for fertiliser and animal feed.

• AB Enzymes, the ABFI industrial biotech business, has continued developing innovative enzyme products that enable customers to reduce GHG emissions in comparison to using traditional products, with no impact on product performance. This is a key part of its customer offering and continues to be a central focus for investment and innovation.

Ohly's products being scanned in the warehouse at Ohly in Hamburg, Germany

Read more about ESG initiatives of our Ingredients businesses on our website at https://www.abf.co.uk.

OPERATING REVIEW - INGREDIENTS CONTINUED

one of the most advanced in the world

Mauri ANZ's new approximately AUS$230m flour mill in the city of Ballarat, Victoria, is one of the largest single investments anywhere by ABF over the last decade and a significant vote of confidence in the development and longterm future of Victoria's agriculture and food industry.

The first flour was produced in August 2026 and the mill will be fully operational early in 2027. In line with increasing demand, it will enable flour production volumes to be more than doubled to 180,000 tonnes (up from 80,000 tonnes at our old mill) and the buying of Victorian grain to be increased from around 100,000 tonnes to an estimated 160,000 tonnes.

Replacing a 19th century mill in North Melbourne which has been part of our Australian business for generations, the Ballarat facility is a technological first for Australia and one of the most advanced mills in the world, engineered for safety, efficiency and product quality. It is highly automated, utilises the latest equipment and is targeting 40% less energy consumption per kilo of flour compared to the old mill.

The safety of Mauri employees has been prioritised, with improved traffic management, a more efficient layout, reduced manual handling and enhanced cleaning systems all expected to deliver improved safety outcomes.

Mauri's move to the historic gold mining city of Ballarat has been carried out with the support of and in partnership with the Victorian Government, including rail connections, land and planning facilitation, and transition arrangements regarding the North Melbourne mill. A key element of this partnership is the AUS$55m Ballarat Intermodal Freight Hub, a major project which

increase in flour production volumes vs old mill

less energy consumption per kilo of flour (target)

will enable more freight to be moved by rail and help reduce GHG emissions, while also creating local jobs and driving economic growth in the region.

The Ballarat mill has been designed to meet increasing demand being driven by significant population growth in Melbourne, which is forecast to overtake Sydney in size by 2035. With ABF's

Top: Mauri ANZ's flour mill and warehouse nearing completion in Ballarat, Victoria, Australia Right: The mill contains some of the most advanced flour processing technology in the world, including Bühler equipment and automation

Australian business able to make more flour than ever before, we expect to supply over 50% of Victoria's flour over the next half century and beyond.

Associated British Foods plc | 36 | Annual Report 2026

OPERATING REVIEW - INGREDIENTS CONTINUED

For nearly 200 years, Ohly has been defined by continuous reinvention. That same long-term mindset is today driving one of the most significant investment programmes in the company's history: a targeted transformation of its manufacturing network to support growth, resilience and emissions' reductions for the decades ahead.

Part of ABFI, Ohly is one of the world's leading suppliers of yeast-based specialities and culinary powders. This year it opened a new state-of-the-art spray drying tower for converting liquid yeast extracts into dry powders at its Hamburg plant, where it is also constructing a highly automated, energy-efficient yeast fermentation plant.

Together, these projects are reshaping the site into a world-class manufacturing platform and are expected to increase fermentation capacity by 50%, reduce its GHG emissions by 30% and strengthen operational resilience.

increase in fermentation capacity

Right: A Hovis sourdough loaf baked in the UK using AB Mauri's technology

The Hamburg programme demonstrates how investment in reducing GHG emissions can also strengthen competitiveness: Ohly is working on reducing its environmental footprint (cutting fresh water usage by 40% and energy usage by 20%) while creating a stronger, more responsive platform for customers. The site supports Ohly's ambition to achieve its target of net zero in Scope 1 and 2 GHG emissions

by 2030.

Ohly is now taking a similar approach in North America with a new production site in Eau Claire, Wisconsin. Centred on a modern spray drying facility, the investment will add 70% capacity,

A quality control manager samples for testing at the Ohly plant in Hamburg, Germany

Strengthening AB Mauri UK's capability to support growing consumer demand in specialty bakery products with the largest liquid sourdough ingredients plant in the UK.

During the year, AB Mauri UK completed the full production start-up of a new liquid sourdough plant in Northampton in the UK, strengthening its capability in an important and growing segment of the bakery market. The investment builds on AB Mauri's established expertise in fermentation and bakery ingredients, including its experience in developing sourdough solutions for industrial

bakery applications.

The new plant expands local manufacturing capability and supports bakery customers looking to create products with distinctive flavour, texture and target audiences. This is particularly relevant as customers continue to respond to evolving consumer preferences for premium products made with simple and recognisable ingredients.

improve customer proximity and strengthen Ohly's US manufacturing footprint. The site has also been designed with future optionality, including potential co-location opportunities for other

ABFI businesses.

Together, these investments show disciplined capital allocation in support of clear strategic priorities: growth capacity, customer service, operational resilience and reduced emissions. They strengthen Ohly's position as a trusted long-term partner for customers and provide a more future-ready manufacturing platform

for ABFI.

Following the plant's start-up, customers have used this new capability to develop additional product segments. These launches demonstrate how specialist ingredient expertise, combined with in-country presence, technical know-

how and close customer collaboration, can successfully bring new products to market.

This investment reinforces AB Mauri's presence in the UK sourdough market by enhancing its ability to meet customer requirements effectively through local capability, service and application expertise.

Associated British Foods plc | 37 | Annual Report 2026

OPERATING REVIEW

ABF Sugar produces a range of sugar, fuels and other products from sugar cane; and sugar beet in Africa, the UK and Spain.

Revenue

2025: £2,047m

Actual currency: down 4% Constant currency: down 9%

Adjusted operating loss margin

(2.4)%

2025: (0.1)%

Adjusted operating loss

2025: £(1)m

Actual currency: >(100)%

Constant currency: >(100)%

Operating loss

2025: £(205)m

Actual currency: down 29%

This group of businesses employs 28,000 people and operates 16 plants in seven countries, with the capacity to produce approximately 4 million tonnes of sugar annually.

In Africa, we have sugar cane operations in Eswatini, Malawi, South Africa, Tanzania and Zambia. We have market-leading consumer brands in these countries, with Bwana Sukari in Tanzania, White Spoon in Zambia and Illovo in multiple markets. In certain markets we also produce co-products such as potable alcohol, furfural and electricity for local grids.

In the UK, British Sugar is the sole processor of the sugar

beet crop and in Spain, Azucarera is the largest sugar producer.

Our strong domestic brands include Silver Spoon in the UK and the Azucarera brand in Spain. In the UK, we produce a range of co-products including energy, animal feed, bioethanol, betaine and CO2.

We also have a 42.5% ownership in Czarnikow Group Limited*, a global supply chain management and advisory company specialising in the food and beverage sector.

* Safety and environment data (or ESG data) is reported for companies

Return on average

capital employed

(2.3)%

2025: (0.1)%

Scope 1 and 2 GHG

emissions (market-based)

1,385

(000 tonnes of CO2e)

2025: 1,724 (000 tonnes of CO2e)

over which the Group has control as described on page 58. Data from joint ventures, associates and other entities that the Group does not control is therefore excluded.

Water abstracted

2025: 787 million m3

Gross investment

2025: £252m

Zambia Sugar's Whitespoon brand is the market leader in Zambia

Associated British Foods plc | 38 | Annual Report 2026