AB Foods explores spin-off of Primark/Penneys fashion chain

Associated British Foods said a review currently under way could result in a separation of the Primark and food businesses

Penneys is part of AB Foods, which includes Ovaltine, Ryvita and Twinings.

Associated British Foods could separate its Primark/Penneys fashion chain from its food businesses, as it reported a 13% drop in full-year profit driven by a weak performance in its sugar unit.

In addition to Primark, which trades from 475 stores in 18 countries and contributes more than half of AB Foods' profit, the group owns grocery brands such as Ovaltine, Ryvita and Twinings, as well as major sugar, agriculture and ingredients businesses.