Princes Group FY2025: big margin gains, strong cash, and fresh LSE clout
Princes Group has posted a punchy first set of preliminary results as a listed company for the 12 months to 31 December 2025. Despite softer top-line dynamics from deflation and pruning low-margin work, the Group delivered meaningful margin expansion, robust cash generation and a swing back to profit. Management has re‑affirmed medium-term guidance.
Do keep in mind two views of the numbers appear in the RNS. The “consolidated” results include acquisitions under common control and compare against a nine-month period in 2024, so they are not strictly like‑for‑like. The “unaudited pro‑forma” view is the cleaner, 12‑month like‑for‑like look at the IPO perimeter.
Headline numbers investors care about
Like-for-like performance on an unaudited pro-forma basis
| Metric | FY2025 | FY2024 | Comment |
|---|---|---|---|
| Revenue | £1,919m | £2,053m | Down 6.5% on deflation and contract rationalisation |
| Adjusted EBITDA | £149.5m | £122.3m | Up 22.2% |
| Adj. EBITDA margin | 7.8% | 6.0% | +181 bps, showing structural margin progress |
| Profit after tax | £61.4m | £9.3m | Material improvement |
| Underlying free cash flow | £128m | Not disclosed | 86% EBITDA conversion (ex IFRS 16) |
Reported consolidated view (12 months vs 9 months)
| Metric | FY2025 | FY2024 (9m) |
|---|---|---|
| Revenue | £1,872m | £1,275m |
| Adjusted EBITDA | £148.0m | £65.0m |
| Profit before tax | £55.4m | £(5.8)m |
| Net cash incl. IFRS 16 | £311.0m | Net debt £417m |
| Net cash ex IFRS 16 | £394.6m | Net debt £366.0m |
Cash and cash equivalents including cash pooling totalled £584.7m, and total shareholder equity stood at £1,076.2m.
Operational highlights that move the needle
- Successful London listing, which the Board says enhances corporate standing and M&A firepower.
- Plasmon integration underway following the shareholder’s acquisition from Kraft Heinz. Princes will manage the business under an operating lease from 1 January 2026, targeting c.15% EBITDA margin in the medium term through insourcing and NPD.
- NewPrinces S.p.A acquired Carrefour Italia on 1 December 2025, giving the Group direct access to approximately 1,000 stores and potential revenue upside via deeper branded and own‑label penetration.
- New multi‑year contracts with major UK and European retailers secured.
- 100% MSC‑certified tuna across the UK and Netherlands, and MSC UK Seafood Brand of the Year for the second year running.
- UKM (“Proudly Made in the UK”) initiative launched, with research showing 79% of consumers are more likely to buy products carrying the label.
- £82m invested in real estate (Royal Liver Building and Cross Green facility) at an implied yield of around 11% per annum via rental savings and income.
Why profits rose while revenue fell
On a like-for-like basis, revenue was down 6.5%. Management points to two deliberate drivers: deflation across several core raw materials, which flows through to selling prices under pass‑through mechanics, and the planned exit from lower‑margin contracts. That top-line pressure was more than offset by cost savings, portfolio mix, and synergy delivery that widened margins by 181 bps to 7.8% and lifted adjusted EBITDA by 22.2%.
In plain terms, Princes sold a little less in value terms, but kept more profit from each pound of sales. That is exactly the right playbook when deflation bites and competition is stiff.
Cash generation and balance sheet strength
Underlying free cash flow hit £128m with an 86% conversion from adjusted EBITDA (excluding IFRS 16 leases). Post-IPO, the Group moved from net debt in FY2024 to a net cash position of £311.0m including IFRS 16, or £394.6m excluding IFRS 16. That is a hefty war chest for a consolidator, backed by £584.7m of cash and cash equivalents and £1,076.2m of equity.
The Group has also locked in around 70% of its 2026 energy needs, which helps visibility, while actively managing renewed inflation in fuel, road haulage and sea freight. Real estate investments made during the year are expected to deliver an implied c.11% annual yield, supporting returns.
Strategy, guidance and M&A pipeline
The message from the Board and CEO is consistent: disciplined, value‑accretive growth, with M&A front and centre. The pipeline is described as active, and the current net cash position excluding IFRS 16 liabilities of £395m gives meaningful flexibility without needing fresh financing.
Medium‑term guidance is confirmed: £3 billion+ revenue, around +300 basis points of EBITDA margin expansion from FY2024 levels, and underlying free cash flow conversion greater than 60%. Management also flags further profitability improvements in line with trajectory, with recent UK and European contract wins providing good H2 2026 visibility.
What could go wrong – and what to watch
- Top-line momentum: pro‑forma revenue fell 6.5% in FY2025. H1 2026 is still expected to see some portfolio optimisation drag.
- Input cost volatility: the Group is hedged for c.70% of 2026 energy needs, but transport and logistics costs are rising again. Pass‑through helps, yet timing differences can dent margins.
- Integration execution: Plasmon is managed under an operating lease from 1 January 2026 and full integration of German and French operations is targeted by year‑end 2026. Delivery against the c.15% medium‑term EBITDA margin ambition will be a useful yardstick.
- Transaction complexity: several FY2025 moves were business combinations under common control with predecessor accounting and related‑party elements. Governance and disclosure look thorough in the RNS, but investors should track cash discipline and return on invested capital as M&A scales.
- Macro and geopolitics: the RNS notes uncertainty around energy and raw materials given the global backdrop, with potential inflationary effects.
My take for shareholders and would‑be buyers
This is a clean execution story. The mix of structural margin expansion, high cash conversion and a fortified balance sheet gives Princes real optionality. Add the LSE listing and you have the ingredients for a credible roll‑up in a fragmented European food and beverage market.
The imperfections are unsurprising. Like‑for‑like revenue dipped and H1 2026 may remain soft on the top line. But the strategy to walk away from low‑margin volumes, secure long‑term contracts and sweat synergies is the right one. The key catalysts now are integration progress on Plasmon, the pace and price discipline of M&A, and evidence that EBITDA margin continues to edge up even if deflation persists.
Net cash of £394.6m excluding IFRS 16 and confirmed medium‑term guidance are strong anchors. On balance, a positive update that sets Princes up for an active 2026.
Quick glossary
- Adjusted EBITDA – earnings before interest, tax, depreciation and amortisation, including specified non‑recurring items per the company’s definition.
- IFRS 16 – accounting standard that brings most leases onto the balance sheet. Excluding IFRS 16 gives a view before lease liabilities.
- Underlying free cash flow – EBITDA adjusted for leases, tax, finance, working capital and capex, excluding £82m of real estate investments.
