(06:01 GMT) *Associated British Foods: Had Resilient 3Q Trading Performance (06:01 GMT) *Associated British Foods: Retail Environment Remained Challenging in Most Markets (06:02 GMT) *Associated British Foods: Primark Continued to Strengthen in 3Q (06:02 GMT) *Associated British Foods: Grocery and Ingredients Delivered Solid 3Q Results (06:03 GMT) *Associated British Foods Adjusts FY26 View (06:04 GMT) *Associated British Foods: Conflict in Middle East Increased Gas Price Expectations in Sugar Business (06:04 GMT) *Associated British Foods: Sugar's European Profit Outlook Impacted (06:05 GMT) *Associated British Foods: Aside From Sugar, FY Group Outlook Is Unchanged (06:06 GMT) *Associated British Foods Primark's 3Q Sales Grew 3% (06:07 GMT) *Associated British Foods Primark's 3Q LFL Sales Declined 2.2% (06:07 GMT) *Associated British Foods 3Q Grocery Revenue Grew 1% (06:08 GMT) *Associated British Foods 3Q Ingredients Revenue Grew 3% (06:08 GMT) *Associated British Foods 3Q Sugar Sales Declined 4% (06:09 GMT) *Associated British Foods Sees Further Deterioration in Sugar Result (06:10 GMT) *Associated British Foods Will Take Further Action to Lower Cost Base in Sugar Unit (06:12 GMT) *Associated British Foods Now Sees FY Sugar Adj. Operating Loss GBP25M to GBP60M (06:15 GMT) *Associated British Foods Continues to See Primark's FY Adj. Operating Profit Margin Around 10% (06:57 GMT) Associated British Foods Sugar Unit Weighs on Business Ahead of Primark Spinoff

By Adam Whittaker

Associated British Foods said its sugar business would post a loss as market conditions deteriorate as the conglomerate prepares to spin off its key clothing business Primark.

The British company backed its guidance across all businesses apart from its sugar unit, where third-quarter sales dropped 4% as average selling prices in Europe fell.

The company said the sugar division should report an adjusted operating loss between 25 million and 60 million pounds ($33.1 million-$79.6 million) for fiscal 2026. It said in April that it expected the unit to report a loss.

It expects a further deterioration in its sugar result for fiscal 2027, with the loss potentially larger than 60 million pounds.

Meanwhile, Primark's third-quarter sales grew 3% but declined 2.2% on a like-for-like basis. It kept the unit's full-year guidance unchanged, and continues to see an adjusted operating profit margin of about 10%.

"We continue to expect group adjusted operating profit and adjusted EPS in 2026 to be below last year," AB Foods said Wednesday.

The company said in April that it will spin off Primark from its food operations, and list the two businesses in London. AB Foods shareholders will hold shares in both companies.

Write to Adam Whittaker at adam.whittaker@wsj.com