Princes’ pre-tax profits have leaped more than sixfold in the business’ first full year under new owner NewPrinces, and its first published as a public company.
While pro-forma results for the year to 31 December 2025 saw Princes lose 6.5% of its revenue in like-for-like terms, falling to £1.9bn, the drop came from a fall in raw material costs passed through to customers, and the abandonment of low-margin contracts.
Yet thanks to “significant margin expansion at every level of the income statement”, strong cash generation and new synergies with NewPrinces group companies, Princes boosted its adjusted EBITDA margin 1.8 points to 7.8%. On a pro-forma basis, EBITDA rose £44m to £145.5m.
The group’s pre-tax profit shot up as a result, multiplying more than sixfold to £80.7m.
Princes has built a significant cash position through the year, thanks to its IPO and higher cash generation. Excluding lease liabilities, it held £394.6m in cash compared with a debt pile of £366m at the end of last year, leaving it substantial dry powder for a cash-funded M&A-powered expansion strategy.
The company said it had identified five short-term targets for acquisition. Three of the five have revenues of around £500m, with the remaining two around £250m and £100m each, according to Peel Hunt analyst Charles Hall.
The Grocer revealed yesterday that Princes had been the first to move on increased costs in the Iran war, asking customers for a minimum 5% price increase, and blaming significant estimated increases in the supplier’s input costs.
In the results, however, Princes said: “As of the date of preparation, there are no direct or immediately quantifiable impacts on the economic, equity, and financial position of the company and the group.”
Princes said it was monitoring increasing energy and logistics costs, and would “implement its pass-through pricing mechanisms as necessary”.
”2025 marks a step-change for Princes Group, with our successful listing and a material strengthening of our financial profile,” said executive chairman Angelo Mastrolia. “The group has delivered strong profitability growth and cash generation, underpinned by a clear focus on margin expansion, capital discipline and high-quality earnings.
“We have built a robust balance sheet and a highly cash-generative platform, providing significant financial flexibility. This positions us to act decisively in a consolidating market, where scale, execution capability and access to capital are increasingly critical.
“Our priority remains disciplined, value-accretive M&A, supported by a proven integration model and a clear capital allocation framework. Princes is uniquely positioned to act as a consolidator in a fragmented European food and beverage sector. We will continue to deploy capital selectively, with a strong focus on returns and long-term value creation for shareholders.”
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