REG - Princes Group PLC - Princes Group Q3 2025 Trading Update
11/11/2025 07:00
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RNS Number : 9559G Princes Group PLC 11 November 2025
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11 November 2025
PRINCES GROUP PLC
("Princes Group", the "Group" or the "Company")
Trading update for the nine months ended 30 September 2025
Princes Group plc (LSE: PRN), a leading international platform in the United
Kingdom and European food and beverage sector, today announces a trading
update for the nine months ended 30 September 2025.
Unless otherwise indicated, the financial information included in this
announcement has been prepared on a pro forma basis and reflects the
consolidation perimeter set out in the Company's prospectus published on 22
October 2025. Accordingly, the information for the nine months ended 30
September 2025 and 30 September 2024 include the Group's subsidiaries and
subsidiary undertakings as at 1 January 2025, together with Symington's
Limited, Princes France SAS and Newlat GmbH, as if they had been consolidated
for the entirety of the periods presented. The financial information set out
in this announcement has not been audited or reviewed by the Company's
auditor.
Continuous margin expansion driving group profitability
The Group continued to execute its strategy focusing on margin-accretive
growth, operational efficiency and disciplined portfolio management. As
expected, the deflationary pricing conditions across several core raw
materials impacted revenue, given the Group's pass-through mechanics with
customers.
Performance highlights
· EBITDA up 51.5% to £111.1 m, driven by structural margin
improvement and synergy delivery
· EBITDA margin expanded to 7.8% (vs. 4.9% at 9M 2024), with notable
gains in Italian (+590 bps), Foods (+170 bps) and drinks (+170 bps)
· Underlying Free Cash Flow to £136.5 million, reflecting sustained
working capital discipline and supplier management
· Topline performance reflects the deflationary environment in the
first nine months of 2025
· Revenue of £1.4 billion, with a focus on earnings quality
· Notable momentum across B2B channel sales (+10% YoY)
Simon Harrison, CEO of Princes Group, commented:
"This has been a milestone period for Princes, with our admission to trading
on the London Stock Exchange. We have taken decisive actions to enhance
earnings quality, improve efficiency and strengthen our commercial
partnerships. We are building a resilient, margin-accretive and customer-led
business with a clear path for sustained growth. Our M&A and integration
capability set along with the firepower we now have as a group is creating
exciting opportunities to pursue value accretive M&A, in line with our
stated strategy."
Business Performance
Further margin expansion was achieved through structural improvements across
the Group's operations. Key drivers included:
· Operational efficiency gains across UK and international
manufacturing facilities
· Improved pricing and product mix discipline
· Enhanced demand planning and waste reduction initiatives
· Exit of low-margin and structurally negative foodservice and
private-label contracts
· Strengthened retailer category partnerships in the UK and Europe
Synergy delivery
The Group's synergy delivery programme is progressing in line with plan and
remains a key driver of the improvement in profitability. Since the July 2024
acquisition of Princes by NewPrinces, the Company has implemented advanced
operational efficiencies and strengthened procurement discipline and supplier
management. These actions have contributed to a £74.3 million improvement in
net working capital, including an increase in Days of Payables Outstanding to
68 days from 50 days at 31 December 2024. Careful NWC optimisation, as well as
operational efficiencies, have resulted in an underlying free cash flow of
£136.5 million.
Commercial momentum has been further supported by targeted cross-selling and
the expansion of the Group's presence into white space opportunities across
existing customers in the UK and continental Europe. These efforts are now
being reinforced by a more exciting innovation pipeline, with new product
launches and range refreshes scheduled to enter the market over the coming
quarters in core growth platforms such as Oils, Italian and Foods.
Net debt
The pro forma adjusted net cash of the Company for the nine-month period ended
30 September 2025 was £268.2 million.
Net Liquidity / (Indebtedness) Proforma As at 30 September 2025
(£ million) (unaudited)
Cash 215
.......................................................................................................
Cash 210
equivalents((1))....................................................................................
Other current financial -
assets....................................................................
Liquidity 425
.................................................................................................
Current financial debt (including debt instruments, but excluding current (25)
portion of non-current financial
debt)((2)).............................................................................
Non-recourse (190)
Factoring((2))..........................................................................
Current portion of non-current financial (101)
debt((3))............................................
Current Financial (316)
Indebtedness...............................................................
Net Current 109
Liquidity...............................................................................
Non-current financial debt (excluding current portion and debt (520)
instruments)((4))
Debt -
instruments......................................................................................
Non-current trade and other -
payables........................................................
Non-current Financial (520)
Indebtedness((4))......................................................
Total Financial (411)
Indebtedness...................................................................
Shareholder Loans((5)) 429
................................................................................
Total Financial Indebtedness adjusted as at 30 Sept 18
2025........................
Net (18)
Debt……………………………………………………………………………………
70.0
Cash pooling with NewPrinces
S.p.A.………………………………………………….
Impact of Acquisitions from NewPrinces 74.8
S.p.A.…………………………………………
Impact of the net proceeds from the Company's initial public offering((6)) (395.0)
……………..
Pro forma Adjusted Net Debt (268.2)
(1) Cash equivalents comprise deposits with banks and financial institutions.
These include deposits with an original maturity of three months or less that
are readily convertible to known amounts of cash and are subject to an
insignificant risk of changes in value.
(2) Current financial debt includes amounts payable in respect of leases of
£24 million, amounts outstanding on the factoring facilities of £191 million
and bank overdrafts of £1 million.
(3) Current portion of non-current financial debt includes amounts outstanding
on the shareholder loans advanced to the Company by NewPrinces S.p.A. (the
"Shareholder Loans") of £74 million and the current portion of the facility
entered into to acquire the Royal Liver Building and the Thornes Park Business
Park in Leeds of £10 million.
(4) Non-current Financial Indebtedness consists of the non-current portion of
the facility entered into to acquire the Royal Liver Building and the Thornes
Park Business Park in Leeds of £40 million, £55 million of non-current lease
liabilities and the non-current portion of the outstanding amounts on the
Shareholder Loan of £354 million.
(5) The full amount of the Shareholder Loans was capitalised into new ordinary
shares in the Company on 5 November 2025 and all obligations of the Company
under the Shareholder Loans has been extinguished.
(6) The impact of the net proceeds does not include any net proceeds which may
be received by the Company in relation to the exercise of the over-allotment
option granted in connection with the Company's initial public offering.
Outlook
The Group continues to trade in line with expectations and remains confident
in the delivery of full-year performance in line with management's internal
budget. The operational and commercial improvements achieved during the period
are expected to continue to support margin development and cash generation.
The Group remains focused on executing its strategy of profitable,
cash-generating growth, supported by a targeted pipeline of M&A
opportunities in core categories and geographies. The Group is now
well-positioned to build sustainable long-term value as a listed business.
The management of the Company confirms its confidence in delivering its
medium-term ambitions:
- Incremental revenue of £ 1 - 1.5 bn through M&A
- Organic revenue CAGR: >3%
- Margin improvement >300 bps (EBITDA margin of 9%)
- Maintain leverage ≤ 2.0x
- Return on capital employed: >20%.
Supplemental information
9M 2025 Revenue by Business Unit
£ m For the 9-month period ending September
2025 Pro forma 2024 Pro forma 2025 Consolidated 2024 Consolidated
Foods 457.9 489.8 447.3 395.7
Drinks 235.1 225.0 235.1 225.0
Fish 272.5 297.6 272.5 297.6
Italian Products 254.4 271.4 218.5 109.6
Oils 203.8 226.6 203.8 226.6
Others ((7)) 0.6 - 0.6 -
Group Total 1,424.3 1,510.5 1,377.8 1,254.6
( )((7)) Refers to other income not attributable to the Group's main business
units
9M 2025 Revenue by Country
£ m For the 9-month period ending September
2025 Pro forma 2024 Pro forma 2025 Consolidated 2024 Consolidated
United Kingdom 1,015.5 1,081.3 1,010.0 992.4
Italy 67.3 76. 67.0 17.8
Germany 90.6 95.3 56.2 26.3
Other countries 250.9 257.2 244.6 218.1
Group Total 1,424.3 1,510.5 1,377.8 1,254.6
9M 2025 Revenue by Channel
For the 9-month period ending September
£ m 2025 Pro forma 2024 Pro forma 2025 Consolidated 2024 Consolidated
Large food retailers 1,152.6 1,243.6 1,120.5 1,031.3
B2B partners 174.9 159.1 160.4 116.7
Food services 96.9 107.9 96.9 106.6
Group Total 1,424.4 1,510.5 1,377.8 1,254.6
9M 2025 EBITDA and EBITDA margin by Business Unit
£ m For the 9-month period ending September
2025 EBITDA Margin 2024 EBITDA Margin 2025 Consolidated EBITDA Margin 2024 Consolidated EBITDA Margin
Pro forma Pro forma
Foods 43.9 9.6% 38.4 7.8% 45.5 10.2% 30.8 7.8%
Drinks 12.3 5.2% 7.9 3.5% 12.3 5.2% 7.8 3.5%
Fish 12.0 4.4% 14.3 4.8% 12.0 4.4% 12.7 4.3%
Italian Products 35.6 14.0% 22.1 8.1% 26.5 12.1% 2.1 1.9%
Oils 7.5 3.7% 7.4 3.3% 7.5 3.7% 7.4 3.3%
Others (0.2) - (16.8) - (0.2) - (16.8) -
Group Total 111.1 7.8% 73.3 4.9% 103.6 7.5% 44.0 3.5%
Enquiries
For further information, please contact:
Princes Group plc
Benedetta Mastrolia, Investor Relations Director investors@princesgroup.com (mailto:investors@princesgroup.com)
Barabino & Partners UK princes@barabino.co.uk (mailto:princes@barabino.co.uk)
Financial PR communications +44 (0)7542 846844
Georgia Colkin
Caroline Merrell
Princes Group plc
Princes Group is a leading international platform in the United Kingdom and
European food and beverage sector. The Group operates across five business
units: Foods, Fish, Italian, Oils, and Drinks and holds leading positions in
both branded and customer own brand products.
The Group's branded portfolio includes well-known, trusted brands such as
Princes, Napolina, Branston, Batchelors, Flora, Crisp 'N Dry, Delverde, Naked
Noodle, and Vier Diamanten.
By combining industrial expertise with long-standing supply partnerships,
Princes Group is a trusted partner to a diverse range of blue-chip customers,
including major food retailers, B2B partners, and the foodservice industry,
reaching over 8,000 clients globally and exporting to more than 60 countries.
Headquartered in Liverpool, UK, Princes Group generated £2.1 bn pro forma
revenues in the twelve months ended 31 December 2024, employs approximately
7,800 people and operates 23 production facilities across the United Kingdom,
continental Europe, and Mauritius, supported by 21 warehouses and distribution
centres and three offices in the UK, Poland, and the Netherlands.
With a strong production network, the Group is well-positioned for future
growth, consistently delivering quality, innovation, and reliable supply
across multiple categories, while upholding its commitment to excellence and
long-term customer relationships.
For more information, visit www.princesgroup.com
(http://www.princesgroup.com/) .
IMPORTANT LEGAL INFORMATION
The financial information disclosed in this announcement which has been marked
as "pro forma" (or variations thereof) ("pro forma financial information") is
unaudited and has not been reviewed by the Company's auditors. The pro forma
financial information is therefore subject to change without notice. The pro
forma financial information has been produced for illustrative purposes only,
by its nature addresses a hypothetical situation and, therefore, does not
represent the Group's actual financial position or results. Such information
may not, therefore, give a true picture of the Group's financial position or
results of operations nor is it indicative of its future results.
This announcement may include statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements may be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "projects", "anticipates", "expects",
"intends", "may", "will" or "should" or, in each case, their negative or other
variations or comparable terminology, or by discussions of strategy, plans,
objectives, ambitions, goals, future events or intentions. Forward-looking
statements may and often do differ materially from actual results. Any
forward-looking statements reflect the Group's current view with respect to
future events and are subject to risks relating to future events and other
risks, uncertainties and assumptions relating to the Group's business, results
of operations, financial position, liquidity, prospects, growth and
strategies. Forward-looking statements speak only as of the date they are
made.
In light of these risks, uncertainties and assumptions, the events in the
forward-looking statements may not occur or the Company's or the Group's
actual results, performance or achievements might be materially different from
the expected results, performance or achievements expressed or implied by such
forward-looking statements. The Company, all members of the Group, and all of
such person's affiliates or their respective directors, officers, employees,
agents or advisers expressly disclaim any obligation or undertaking to update,
review or revise any such forward-looking statement or any other information
contained in this announcement, whether as a result of new information, future
developments or otherwise, except to the extent required by applicable law.
For the avoidance of doubt, the contents of the Group's website or any
website, including the websites of the Group's business units, directly or
indirectly linked to the Group's website, are not incorporated by reference
into, and do not form part of, this announcement.
END
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