REG - Princes Group PLC - Q1 2026 Trading Update

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RNS Number : 2391E  Princes Group PLC  14 May 2026

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14 May 2026

PRINCES GROUP PLC

("Princes Group", the "Group" or the "Company")

Continuous margin expansion driving group profitability

Trading update for the three months ended 31 March 2026

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 three months ended 31 March 2026.

Q1 2026 highlights

·    Revenue increased 6% year on year to £506.6 million, supported by
recent perimeter expansion and resilient performance across the Group's core
categories.

·    Adj. EBITDA increased 17% to £38.2 million, with Adj. EBITDA margin
expanding to 7.5% (Q1 2025: 6.8%), reflecting continued operational
discipline, synergy delivery and portfolio optimisation initiatives.

·    Underlying Free Cash Flow generation remained strong at £34 million
for the quarter, implying a FCF conversion rate of 89%, supporting a further
strengthening of the Group's balance sheet and liquidity profile.

·    Net cash increased to £344 million at 31 March 2026 (£433 million
excluding IFRS 16 liabilities), compared with £311 million at 31 December
2025 (£395 million excluding IFRS 16 liabilities).

·    Current trading has seen positive momentum entering Q2, with April
performance ahead year on year.

·    Continued innovation pipeline across core brands and markets, with
several new product launches scheduled for Q2 and H2 2026.

·    The Group continues to optimise its manufacturing processes, focusing
on capacity utilisation, SKU rationalisation and cost structure improvements,
with further cost savings and inventory optimisation benefits expected over
the coming quarters.

·    Integration continues on track, with the successful incorporation of
Plasmon into the Group, France and Germany progressing and work underway for
the transfer of Princes Ready to Drink.

·    M&A activity remains ongoing, with the Company involved in
several ongoing acquisition processes whilst remaining financially
disciplined.

 

 Simon Harrison, CEO of Princes Group, commented:

"The Group has yet again demonstrated the resilience of our operating model
and the continued execution of our margin-accretive growth strategy. The Group
delivered strong EBITDA growth, continued margin expansion and a further
strengthening of its net cash position.

''Trading trends have improved entering the second quarter, while our highly
cash-generative business model and strong balance sheet continue to provide
substantial strategic flexibility. Alongside ongoing operational and
commercial initiatives across the Group, we continue to see a strong pipeline
of value-accretive M&A opportunities consistent with our long-term
strategy, and we remain confident in our ability to complete at least one
transaction in the near term, whilst maintaining our strict acquisition
criteria.

''Whilst the broader macro-economic environment remains uncertain, we remain
confident in the resilience of the business and our ability to continue
delivering profitable growth, strong cash generation and long-term value
creation."

 

Performance highlights

The Group continued to execute its strategy focusing on margin-accretive
growth, operational discipline and cash generation.

Reported revenue increased 6% year on year to £506.6 million, reflecting
the contribution from recent perimeter enlargement, including Princes France
S.A.S., Newlat GmbH and Plasmon.

The Company's Q1 topline performance reflected the normal seasonal profile of
the food and beverage sector, with softer volumes in the early part of the
year following the festive period, alongside typical retailer inventory
optimisation dynamics.

The Group delivered resilient trading across the majority of its core
categories during the period, with Foods and Fish broadly stable year on year,
positive momentum in Oils and particularly strong growth in Italian Products,
supported by the integration of additional businesses, including Plasmon.
Excluding the contribution from recent acquisitions, underlying revenue trends
remained broadly consistent with FY 2025, reflecting ongoing portfolio
optimisation initiatives and deflationary trends.

Performance in Drinks was impacted by the unwinding of the exceptional orange
juice commodity price cycle experienced during 2024 and Q1 2025. Q1 2025
performance benefited from the timing of pricing adjustments following the
decline in orange juice prices. The Group expects this effect to progressively
normalise over the coming quarters as the comparison basis moderates.

While the first quarter reflected normal seasonal trading patterns, the Group
has seen encouraging momentum entering Q2, with April trading performance
ahead year on year.

Adj. EBITDA increased 16.8% to £38.2 million, driven by improved
operational leverage, synergy delivery and continued cost discipline.

Adj. EBITDA margin increased to 7.5%, compared with 6.8% in Q1 2025. The
expansion was largely driven by the Italian segment, which contributed +644
bps, reflecting continued operational discipline as well as the contribution
of recent acquisitions.

Underlying Free Cash Flow generation remained strong at £34 million,
implying a FCF conversion of 89% and reflecting sustained working capital
discipline, procurement optimisation and continued focus on cash conversion
across the Group.

The Group further strengthened its balance sheet and liquidity profile during
the quarter, reporting a Net cash position of £344m (£433m excluding IFRS 16
liabilities), compared with net cash of £311m at 31 December 2025 (£395m
excluding IFRS 16 liabilities). The continued increase in net cash reflects
the Group's highly cash generative operating model, disciplined capital
allocation and resilient underlying trading performance.

The Group continues to advance a number of organic growth initiatives across
its core businesses. The new commercial plan, focused new product development
initiatives and broader cross-selling and customer opportunities identified
across Princes Group, together with the addition of the commercial integration
opportunities arising from Princes Retail (Carrefour Italy), are expected to
support progressive topline improvement over the medium term.

Recent and upcoming new product development initiatives launched in Q1 or
scheduled for Q2 2026 include:

-     100% MSC certified Princes jack mackerel (UK market - Q1 2026)

-     Napolina new pasta shapes, "cavatappi" (fastest growing pasta shape
in the UK market, +25% YoY) and "casarecce" (UK market - Q1 2026)

-     Mug shot new positioning, optimised recipes and refreshed packaging
designs (UK market - Q2 2026)

-     Introduction of Princes Tuna ("Tonno Princes") into Princes
Retail (Italian market - Q2 2026).

-     Birkel high protein (25%) pasta (German market - Q2 2026)

-     Renewal for the second consecutive year of the partnership for
Plasmon branded ice cream products with Italian ice cream maker Sammontana,
alongside the launch of a new tub format following the successful launch of
the biscuit ice cream stick range in 2025 (Italian market - Q2 2026).

-     Launch of Delverde Crostino Dorato superfood crackers (Italian
market - Q2 2026).

-     Expansion of the Delverde Granfetta rusks range with the new
"Granfetta Benefit" line focused on Energy and Immune Defence (Italian market
- Q2 2026).

-     Launch of new ready sauces and pestos under the Napolina and
Delverde brands, produced at the Group's Foggia facility (UK, Italian and
German market - Q2 2026)

 

The initiatives outlined above form part of a broader innovation pipeline
across the Group's core categories and markets, with further launches expected
during H2 2026.

 

M&A and Capital allocation

The Group's M&A pipeline remains active, with an increasing number of
opportunities currently under evaluation, in line with Management's
disciplined and value-focused acquisition strategy. Management expects to
complete at least one acquisition in the next couple of months, although there
can be no certainty regarding timing or completion until definitive agreements
are executed and relevant approvals obtained. The Group's strong balance sheet
and net cash position continue to provide substantial strategic flexibility to
pursue value-accretive growth opportunities without recourse to additional
financing.

Outlook

Trading in the early part of FY 2026 has remained in line with Management
expectations. While certain portfolio optimisation initiatives and pricing
dynamics are expected to continue impacting reported revenue growth during the
first half of the year, underlying demand across the Group's core categories
remains resilient, supported by recent contract wins and improving trading
trends entering Q2.

The Group expects further profitability improvement through FY 2026, supported
by the structural efficiency measures implemented during FY 2025, ongoing
synergy delivery and continued operational discipline across the business.
Whilst the broader macro-economic and inflationary environment remains
uncertain, particularly in relation to energy, transport and selected raw
material categories, the Group continues to actively manage these pressures
through procurement initiatives, operational efficiencies and disciplined
pricing mechanisms where appropriate.

Despite the current macro-economic backdrop, Management remains confident in
the resilience of the Group's operating model, the strength of its market
positions and the long-term strategic opportunities available to the business
and, therefore, continues to expect to progress in line with its medium-term
objectives.

 

Supplemental information

 

 3M 2026 Revenue by Business Unit

 £m                 2026 Consolidated  2025 Consolidated  YoY Change (%)
 Foods              159.7              159.9              (0.1%)
 Drinks             64.0               73.9               (13.4%)
 Fish               89.3               89.9               (0.7%)
 Italian Products   115.0              79.9               43.9%
 Oils               78.6               74.7               5.2%
 Group Total        506.6              478.3              5.9%

 

 

 3M 2026 Revenue by Country

 £m               2026 Consolidated  2025 Consolidated  YoY Change (%)
 United Kingdom   337.0              356.9              (5.6%)
 Italy            52.8               21.7               143.3%
 Germany          29.7               20.0               48.5%
 Other Countries  87.1               79.7               9.3%
 Group Total      506.6              478.3              5.9%

 

 

 3M 2026 Revenue by Channel

 £m                    2026 Consolidated          2025 Consolidated  YoY Change (%)
 Large food retailers  399.3                      378.3              5.6%
 B2B partners          51.0                       47.8               6.7%
 Foodservice           56.3                       52.2               7.9%
 Group Total           506.6                      478.3              5.9%

 

 

 3M 2026 Adj. EBITDA and Adj. EBITDA margin by Business Unit

 £m                      2026 Consolidated       EBITDA      2025 Consolidated  EBITDA
             Margin      Margin
 Foods                   16.2                    10.1%       17.0               10.4%
 Drinks                  2.2                     3.4%        5.0                6.4%
 Fish                    4.0                     4.5%        3.4                3.5%
 Italian Products        12.7                    11.0%       4.0                4.6%
 Oils*                   3.1                     3.9%        3.1                3.8%
 Group Total             38.2                    7.5%        32.7               6.8%

 

 * The Oils Adj. EBITDA and Adj. EBITDA margin is reported on a 50% basis,
reflecting the joint operation accounting treatment applied to EOL, the joint
venture between Princes Group and ADM. On a 100% basis, Oils Adj. EBITDA would
be £6.2 million, with an Adj. EBITDA margin of 7.8%.

 

 

Enquiries

 

For further information, please contact:

 Princes Group plc                                 investors@princesgroup.com (mailto:investors@princesgroup.com)
 Benedetta Mastrolia, Investor Relations Director

 Barabino and Partners UK                          princes@barabino.co.uk (mailto:princes@barabino.co.uk)

 (Financial PR communications)                     +44 (0) 7542846844
 Georgia Colkin / Caroline Merrell                 +44 (0)7852 210329

 

 

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,
Plasmon, 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 £1.92 bn pro forma
revenues in the year ended 31 December 2025, employs approximately 7,800
people and operates 24 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/) .

 

END

 

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