DAVY VIEW

We are lowering our FY26 and FY27 adjusted operating profit forecasts by c.1.8% and c.6.6% respectively, reflecting further weakness in Sugar. While we believe much of this is reflected in the valuation, visibility on a sustained recovery in earnings momentum remains limited. Management’s proposed rollout of home delivery in Great Britain represents a significant shift from Primark’s store-led model and creates a potentially meaningful new avenue for growth. In this report, we assess the infrastructure and capabilities in place to support home delivery, the scope for growth and the economics of adoption. The proposition is strategically coherent, but the extended rollout timeline, demerger and uncertainty around Primark’s broader growth strategy limit near-term visibility. We do not expect the market to underwrite meaningful value until execution is demonstrated.