Highlights:

  • EBITDA up 51.5% to £111.1 million, with margin expansion to 7.8%.
  • Underlying free cash flow of £136.5 million, aided by working capital and supplier management.
  • Revenue of £1.4 billion with 10% year-on-year growth in B2B channels.

Princes Group plc (LSE: PRN), a major player in the UK and European food and beverage industry, has released its trading update for the nine months ending 30 September 2025. The report shows continued progress in operational efficiency, margin expansion, and cash generation, despite deflationary pressures on raw materials.

Revenue Performance Amid Deflationary Conditions

For the nine months to September 2025, Princes Group reported revenue of £1.4 billion, reflecting the impact of deflationary pricing across key raw materials. While topline growth was moderated, the company focused on earnings quality and sustained demand in its B2B channels, which grew by 10% year-on-year. The Group also benefited from portfolio management measures, including the exit of low-margin contracts and strengthened retailer partnerships across the UK and Europe.

Margin Expansion Drives Profitability

EBITDA increased by 51.5% to £111.1 million, supported by structural margin improvements and synergy delivery. The EBITDA margin rose to 7.8%, compared with 4.9% in the same period last year, with notable gains in Italian (+590 bps), Foods (+170 bps), and Drinks (+170 bps) divisions. Underlying free cash flow reached £136.5 million, driven by careful working capital management, improved supplier terms, and operational efficiency initiatives across UK and international manufacturing sites.

Operational Improvements and Synergy Delivery

Princes Group advanced several operational initiatives during the period, including enhanced demand planning, waste reduction, improved pricing discipline, and product mix optimisation. The Group’s synergy programme, initiated after the July 2024 acquisition by NewPrinces, contributed to a £74.3 million improvement in net working capital, with Days of Payables Outstanding increasing from 50 to 68 days. Cross-selling strategies and expansion into untapped areas of existing customer accounts in the UK and Europe further supported commercial momentum.

Innovation and Future Growth

The Group plans to reinforce its market presence with new product launches and range refreshes in key categories such as Oils, Italian, and Foods. Princes Group continues to pursue M&A opportunities, aiming to add £1–1.5 billion in incremental revenue. The company maintains guidance for an organic revenue CAGR of over 3%, EBITDA margin improvement of more than 300 bps to 9%, leverage of ≤2.0x, and a return on capital employed above 20%.

Net Debt Position

The Group reported a pro forma adjusted net cash position of £268.2 million as of 30 September 2025, reflecting the combined effect of operational cash flow generation and working capital optimisation.