Is ABF.L (Associated British Foods plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, ABF.L is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (26.52% vs ≤33% threshold), interest income ratio (0.24% vs ≤5% threshold), and cash & securities ratio (7.61% vs ≤33% threshold).

Associated British Foods plc is a diversified international food, ingredients, and retail group with a massive footprint across 53 countries. While best known on the high street for owning Primark, the company is a powerhouse in the grocery aisle with household names like Twinings tea, Kingsmill bread, and Patak's cooking sauces, alongside a major global sugar production operation. Its unique structure balances the fast-paced fashion retail sector with the steady , defensive nature of essential food ingredients and agriculture. For Muslim investors using HalalStocks.co.uk, AB F is currently classified as Halal, having passed all four AAOIFI screening criteria. The company’s business activities are fundamentally permissible, focusing on food production and clothing retail rather than prohibited industries like alcohol or gambling. This 'pass' status means the stock is eligible for investment without the need for complex purification calculations often required for companies with higher levels of non-compliant income. Financially, ABF demonstrates prudent management that aligns well with Islamic finance principles. The company maintains a debt-to-market cap ratio of 26.5%, which is comfortably under the 33% limit, and holds relatively low cash reserves at 7.6% of its market capitalization. Perhaps most importantly, its reliance on interest income is negligible at just 0.24% of revenue, suggesting the company generates its profits through genuine trade rather than interest- based financial engineering. Investors should continue to monitor the company's debt levels, as retail expansion and commodity price fluctuations can impact borrowing needs. While the core business is halal, the diversified nature of the group means investors should always stay alert to any new acquisitions or product lines that might introduce non-compliant elements, though current operations remain clean. Associated British Foods plc operates in the Consumer Defensive sector under the Packaged Foods industry and is headquartered in London, GB. The company is led by CEO George Garfield Weston and employs approximately 138,000 people.

ABF.L was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. ABF.L passed 4 of these 4 screens.

Although ABF.L passes all shariah screens, it does earn $47.0M in interest income (0.24% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.24 to purify the income.

ABF.L was last screened on 2026-02-24. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.