Underlying profits jumped 17% at Princes Group in the first quarter despite a 5.6% drop in UK sales.
Overall revenues increased 5.9% to £506.6m in the three months to 31 March 2026, as new additions to the group from parent company NewPrinces boosted the top line.
But revenue in Princes’ largest geography by far, the UK, fell by nearly £20m to £337m. Trading has improved heading into Q2, with April’s performance “ahead year-on-year”, Princes said in a Q1 trading update this morning.
The company’s focus on “margin-accretive growth, operational discipline and cash generation” helped it win 17% adjusted EBITDA growth to £38.2m in the first quarter. Adjusted EBITDA margin was up to 7.5% from 6.8% in the prior year.
“The Group has yet again demonstrated the resilience of our operating model and the continued execution of our margin-accretive growth strategy,” said CEO Simon Harrison.
Much of the growth in underlying EBITDA came from the group’s Italian segment.
Princes was among the first major suppliers to push through price hikes in response to the Iran war, asking customers across Europe for a minimum 5% increase. The Grocer understands the CPI was not applied as a blanket increase in the UK market.
The group’s highly cash-generative model and strong balance sheet have given Princes “substantial strategic flexibility”, the company said. Alongside the £400m war chest from its London IPO, this flexibility has allowed the group to build a “strong pipeline” of M&A opportunities.
“We remain confident in our ability to complete at least one transaction in the near term, whilst maintaining our strict acquisition criteria,” said Harrison.
“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.”
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