Q1 2026 Trading Update

Princes Group PLC

14 May 2026

 

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14 May 2026

PRINCES GROUP PLC

("Princes Group", the "Group" or the "Company")

Continuous margin expansion driving group profitability

Trading update for the three months ended 31 March 2026

Princes Group plc (LSE: PRN), a leading international platform in the United Kingdom and European food and beverage sector, today announces a trading update for the three months ended 31 March 2026.

Q1 2026 highlights

·    Revenue increased 6% year on year to £506.6 million, supported by recent perimeter expansion and resilient performance across the Group's core categories.

·    Adj. EBITDA increased 17% to £38.2 million, with Adj. EBITDA margin expanding to 7.5% (Q1 2025: 6.8%), reflecting continued operational discipline, synergy delivery and portfolio optimisation initiatives.

·    Underlying Free Cash Flow generation remained strong at £34 million for the quarter, implying a FCF conversion rate of 89%, supporting a further strengthening of the Group's balance sheet and liquidity profile.

·    Net cash increased to £344 million at 31 March 2026 (£433 million excluding IFRS 16 liabilities), compared with £311 million at 31 December 2025 (£395 million excluding IFRS 16 liabilities).

·    Current trading has seen positive momentum entering Q2, with April performance ahead year on year.

·    Continued innovation pipeline across core brands and markets, with several new product launches scheduled for Q2 and H2 2026.

·    The Group continues to optimise its manufacturing processes, focusing on capacity utilisation, SKU rationalisation and cost structure improvements, with further cost savings and inventory optimisation benefits expected over the coming quarters.

·    Integration continues on track, with the successful incorporation of Plasmon into the Group, France and Germany progressing and work underway for the transfer of Princes Ready to Drink.

·    M&A activity remains ongoing, with the Company involved in several ongoing acquisition processes whilst remaining financially disciplined.

 Simon Harrison, CEO of Princes Group, commented:

"The Group has yet again demonstrated the resilience of our operating model and the continued execution of our margin-accretive growth strategy. The Group delivered strong EBITDA growth, continued margin expansion and a further strengthening of its net cash position.

''Trading trends have improved entering the second quarter, while our highly cash-generative business model and strong balance sheet continue to provide substantial strategic flexibility. Alongside ongoing operational and commercial initiatives across the Group, we continue to see a strong pipeline of value-accretive M&A opportunities consistent with our long-term strategy, and we remain confident in our ability to complete at least one transaction in the near term, whilst maintaining our strict acquisition criteria.

''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."

Performance highlights

The Group continued to execute its strategy focusing on margin-accretive growth, operational discipline and cash generation.

Reported revenue increased 6% year on year to £506.6 million, reflecting the contribution from recent perimeter enlargement, including Princes France S.A.S., Newlat GmbH and Plasmon.

The Company's Q1 topline performance reflected the normal seasonal profile of the food and beverage sector, with softer volumes in the early part of the year following the festive period, alongside typical retailer inventory optimisation dynamics.

The Group delivered resilient trading across the majority of its core categories during the period, with Foods and Fish broadly stable year on year, positive momentum in Oils and particularly strong growth in Italian Products, supported by the integration of additional businesses, including Plasmon. Excluding the contribution from recent acquisitions, underlying revenue trends remained broadly consistent with FY 2025, reflecting ongoing portfolio optimisation initiatives and deflationary trends.

Performance in Drinks was impacted by the unwinding of the exceptional orange juice commodity price cycle experienced during 2024 and Q1 2025. Q1 2025 performance benefited from the timing of pricing adjustments following the decline in orange juice prices. The Group expects this effect to progressively normalise over the coming quarters as the comparison basis moderates.

While the first quarter reflected normal seasonal trading patterns, the Group has seen encouraging momentum entering Q2, with April trading performance ahead year on year.

Adj. EBITDA increased 16.8% to £38.2 million, driven by improved operational leverage, synergy delivery and continued cost discipline.

Adj. EBITDA margin increased to 7.5%, compared with 6.8% in Q1 2025. The expansion was largely driven by the Italian segment, which contributed +644 bps, reflecting continued operational discipline as well as the contribution of recent acquisitions. 

Underlying Free Cash Flow generation remained strong at £34 million, implying a FCF conversion of 89% and reflecting sustained working capital discipline, procurement optimisation and continued focus on cash conversion across the Group.

The Group further strengthened its balance sheet and liquidity profile during the quarter, reporting a Net cash position of £344m (£433m excluding IFRS 16 liabilities), compared with net cash of £311m at 31 December 2025 (£395m excluding IFRS 16 liabilities). The continued increase in net cash reflects the Group's highly cash generative operating model, disciplined capital allocation and resilient underlying trading performance.

The Group continues to advance a number of organic growth initiatives across its core businesses. The new commercial plan, focused new product development initiatives and broader cross-selling and customer opportunities identified across Princes Group, together with the addition of the commercial integration opportunities arising from Princes Retail (Carrefour Italy), are expected to support progressive topline improvement over the medium term.

Recent and upcoming new product development initiatives launched in Q1 or scheduled for Q2 2026 include:

-     100% MSC certified Princes jack mackerel (UK market - Q1 2026)

-     Napolina new pasta shapes, "cavatappi" (fastest growing pasta shape in the UK market, +25% YoY) and "casarecce" (UK market - Q1 2026)

-     Mug shot new positioning, optimised recipes and refreshed packaging designs (UK market - Q2 2026)

-     Introduction of Princes Tuna ("Tonno Princes") into Princes Retail (Italian market - Q2 2026).

-     Birkel high protein (25%) pasta (German market - Q2 2026)

-     Renewal for the second consecutive year of the partnership for Plasmon branded ice cream products with Italian ice cream maker Sammontana, alongside the launch of a new tub format following the successful launch of the biscuit ice cream stick range in 2025 (Italian market - Q2 2026).

-     Launch of Delverde Crostino Dorato superfood crackers (Italian market - Q2 2026).

-     Expansion of the Delverde Granfetta rusks range with the new "Granfetta Benefit" line focused on Energy and Immune Defence (Italian market - Q2 2026).

-     Launch of new ready sauces and pestos under the Napolina and Delverde brands, produced at the Group's Foggia facility (UK, Italian and German market - Q2 2026)

The initiatives outlined above form part of a broader innovation pipeline across the Group's core categories and markets, with further launches expected during H2 2026.

M&A and Capital allocation

The Group's M&A pipeline remains active, with an increasing number of opportunities currently under evaluation, in line with Management's disciplined and value-focused acquisition strategy. Management expects to complete at least one acquisition in the next couple of months, although there can be no certainty regarding timing or completion until definitive agreements are executed and relevant approvals obtained. The Group's strong balance sheet and net cash position continue to provide substantial strategic flexibility to pursue value-accretive growth opportunities without recourse to additional financing.

Outlook

Trading in the early part of FY 2026 has remained in line with Management expectations. While certain portfolio optimisation initiatives and pricing dynamics are expected to continue impacting reported revenue growth during the first half of the year, underlying demand across the Group's core categories remains resilient, supported by recent contract wins and improving trading trends entering Q2.

The Group expects further profitability improvement through FY 2026, supported by the structural efficiency measures implemented during FY 2025, ongoing synergy delivery and continued operational discipline across the business. Whilst the broader macro-economic and inflationary environment remains uncertain, particularly in relation to energy, transport and selected raw material categories, the Group continues to actively manage these pressures through procurement initiatives, operational efficiencies and disciplined pricing mechanisms where appropriate.

Despite the current macro-economic backdrop, Management remains confident in the resilience of the Group's operating model, the strength of its market positions and the long-term strategic opportunities available to the business and, therefore, continues to expect to progress in line with its medium-term objectives.

Supplemental information

3M 2026 Revenue by Business Unit
£m	2026 Consolidated	2025 Consolidated	YoY Change (%)
Foods	159.7	159.9	(0.1%)
Drinks	64.0	73.9	(13.4%)
Fish	89.3	89.9	(0.7%)
Italian Products	115.0	79.9	43.9%
Oils	78.6	74.7	5.2%
Group Total	506.6	478.3	5.9%

3M 2026 Revenue by Country
£m	2026 Consolidated	2025 Consolidated	YoY Change (%)
United Kingdom	337.0	356.9	(5.6%)
Italy	52.8	21.7	143.3%
Germany	29.7	20.0	48.5%
Other Countries	87.1	79.7	9.3%
Group Total	506.6	478.3	5.9%

3M 2026 Revenue by Channel
£m	2026 Consolidated		2025 Consolidated	YoY Change (%)
Large food retailers	399.3		378.3	5.6%
B2B partners	51.0		47.8	6.7%
Foodservice	56.3		52.2	7.9%
Group Total	506.6		478.3	5.9%

3M 2026 Adj. EBITDA and Adj. EBITDA margin by Business Unit
£m		2026 Consolidated		EBITDA	2025 Consolidated	EBITDA
				Margin		Margin
Foods		16.2		10.1%	17.0	10.4%
Drinks		2.2		3.4%	5.0	6.4%
Fish		4.0		4.5%	3.4	3.5%
Italian Products		12.7		11.0%	4.0	4.6%
Oils*		3.1		3.9%	3.1	3.8%
Group Total		38.2		7.5%	32.7	6.8%

 * The Oils Adj. EBITDA and Adj. EBITDA margin is reported on a 50% basis, reflecting the joint operation accounting treatment applied to EOL, the joint venture between Princes Group and ADM. On a 100% basis, Oils Adj. EBITDA would be £6.2 million, with an Adj. EBITDA margin of 7.8%.

Enquiries

For further information, please contact:

Princes Group plc	[e-mail]
Benedetta Mastrolia, Investor Relations Director
Barabino and Partners UK (Financial PR communications)	[e-mail] [phone]
Georgia Colkin / Caroline Merrell	[phone]

Princes Group plc

Princes Group is a leading international platform in the United Kingdom and European food and beverage sector. The Group operates across five business units: Foods, Fish, Italian, Oils, and Drinks and holds leading positions in both branded and customer own brand products.

The Group's branded portfolio includes well-known, trusted brands such as Princes, Napolina, Branston, Batchelors, Flora, Crisp 'N Dry, Delverde, Plasmon, Naked Noodle, and Vier Diamanten.

By combining industrial expertise with long-standing supply partnerships, Princes Group is a trusted partner to a diverse range of blue-chip customers, including major food retailers, B2B partners, and the foodservice industry, reaching over 8,000 clients globally and exporting to more than 60 countries.

Headquartered in Liverpool, UK, Princes Group generated £1.92 bn pro forma revenues in the year ended 31 December 2025, employs approximately 7,800 people and operates 24 production facilities across the United Kingdom, continental Europe, and Mauritius, supported by 21 warehouses and distribution centres and three offices in the UK, Poland, and the Netherlands.

With a strong production network, the Group is well-positioned for future growth, consistently delivering quality, innovation, and reliable supply across multiple categories, while upholding its commitment to excellence and long-term customer relationships.

For more information, visit www.princesgroup.com.

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