Princes Group reports higher profit and cash generation in first-half results

Traders Union
All News
Financial Institutions
Princes Group profit and cash growth

Highlights

Princes Group reports first-half 2026 revenue up 7% to £999.4 million and profit before taxation up 62% to £39.2 million, with adjusted EBITDA of £79.3 million.
Plasmon acquisition drives immediate integration benefits, enabling a 30% reduction in cost of goods sold, over €1.5 million in fixed-cost absorption, and further insourcing initiatives planned.
Commercial momentum accelerates with new customer wins, product launches at Carrefour Italia, Carrefour France, Lidl Netherlands, Rewe Poland, and £2 million in additional operational efficiencies identified.

First-half performance and acquisition benefits

As reported by London Stock Exchange, citing its Regulatory News Service, Princes Group says revenue rises 7% year on year to £999.4 million in the first half of 2026, while adjusted EBITDA increases 7% to £79.3 million. Profit before taxation climbs 62% to £39.2 million, adjusted EBITDA margin remains unchanged at 7.9%, and underlying free cash flow improves 20% to £90.1 million.

The company says net cash grows to £374 million, or £481 million excluding IFRS 16, driven by strong free cash flow generation. Return on capital employed stands at 12.2%, up from 11.6% a year earlier.

Princes says revenue growth reflects contributions from a recent acquisition, with strong double-digit percentage growth in its Italian and Oils business units and moderate growth in Foods. It also highlights immediate integration benefits from the Plasmon acquisition, including the successful insourcing of baby and medical pasta production at Ozzano, which it says will deliver a 30% reduction in cost of goods sold and more than €1.5 million of fixed-cost absorption, with further insourcing initiatives planned for the second half.

Commercial momentum and second-half outlook

The group says commercial momentum remains strong in the first half as it secures new customer wins and expands distribution across key markets and categories. Recent developments include 11 Princes Tuna SKUs launched across the Carrefour Italia retail network, a doubling of customer own-brand tuna business with Carrefour France, a new Princes branded listing with Lidl Netherlands and new tomato business with Rewe Poland.

Princes also says it identifies about £2 million of additional operational efficiencies and that implementation is under way, while delivery of its synergy programme remains on track. Interim CEO Giuseppe Mastrolia, who takes on the role in July 2026, says management is focused on faster execution, greater accountability, manufacturing efficiency and disciplined capital allocation.

For the outlook, the company says trading momentum strengthens during the second quarter, with performance ahead of the first quarter. Fish continues to deliver positive volume momentum, although revenues are affected by lower raw tuna prices, and Princes says it remains focused on organic growth as well as evaluating value-accretive M&A opportunities across the European food and beverage sector.

Our earlier report on Sazerac’s acquisition of Au Vodka covered the U.S. spirits group’s purchase of the UK-based vodka and ready-to-drink brand in a deal valued at more than £300 million. We noted that the transaction strengthens Sazerac’s footprint in the UK and adds exposure to fast-growing RTD and vodka categories as consolidation continues across the sector.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.