Princes Group reported higher first-half revenue, earnings and cash generation as the UK and European food and beverage company continues integrating acquisitions and pursuing additional M&A opportunities.
Revenue increased 7% to £999.4 million, while adjusted EBITDA rose 7% to £79.3 million. Profit before tax jumped 62% to £39.2 million, and underlying free cash flow increased 20% to £90.1 million.
Adjusted EBITDA margin remained stable at 7.9% despite inflationary pressure across several input costs. Free cash flow conversion improved to 115.3%, while return on capital employed reached 12.2%.
Princes ended the period with net cash of £374 million, up from £311 million at the end of 2025, giving the company substantial financial flexibility for additional investment and acquisitions.
Integration of Plasmon is already delivering benefits. Princes successfully brought baby and medical pasta production in-house at Ozzano, a change expected to reduce cost of goods sold by 30% and provide more than €1.5 million of fixed-cost absorption.
The company also expanded distribution across several European markets. It launched 11 Princes Tuna products across Carrefour Italia, doubled its customer own-brand tuna business with Carrefour France and secured additional listings with Lidl Netherlands and Rewe Poland.
Princes is actively pursuing consolidation opportunities across European food and beverages and is in advanced negotiations regarding two potential acquisitions. Management expects to complete at least one transaction over the coming months, subject to negotiations and approvals.
The company continues to trade in line with fiscal 2026 expectations, with price increases implemented from July expected to provide greater benefits during the third and fourth quarters.
KEY QUOTES:
“Our focus is on faster execution, greater accountability and commercial ownership, alongside improving the efficiency of our manufacturing network and disciplined allocation of capital and resources. Our objective is clear: to translate Princes’ considerable capabilities into stronger growth, profitability and cash generation.”
Giuseppe Mastrolia, Interim CEO of Princes Group
