Princes reports revenue growth as UK government campaign boosts demand

Princes Group PLC said on Tuesday that it was entering the fourth quarter with strong momentum, with a government campaign aiding UK trading and as commercial wins continued in Europe, despite ongoing inflationary concerns.

Shares in the Liverpool-based food and beverage maker, which owns brands such as Napolina, Branston and Flora, fell 0.5% to 368.00 pence on Tuesday afternoon.

In a trading statement, Princes reported that revenue rose 10% to £1.52 billion in the first nine months of 2026, from £1.38 billion a year earlier, driven by the integration of recent acquisitions, including Princes France SAS, Newlat GmbH and Plasmon.

Adjusted earnings before interest, tax, depreciation and amortisation increased 6.4% to £116.2 million from £109.2 million a year earlier. The adjusted Ebitda margin was broadly stable at 7.7%, compared with 7.9% in 2025, despite higher energy and fuel costs.

Interim Chief Executive Giuseppe Mastrolia said: "Our performance over the first nine months of 2026 demonstrates the resilience of our business and the strength of our strategy, particularly against the backdrop of a challenging UK economic environment, persistent inflationary pressures and continued consumer uncertainty."

In the third quarter alone, Princes said like-for-like revenue, excluding acquisitions, grew 3.3%, driven by continued improvements in the fish and oils business units, which more than offset weaker performances in Foods, Drinks and Italian Products.

Adjusted Ebitda increased 8.5% to £37.8 million in the third quarter, driven by "enlarged operational scale, synergy delivery and continued cost discipline".

Princes said demand in the UK for products such as tinned fish, meat and vegetables had increased following the government's launch of the be ready campaign in October. The campaign encouraged households to stock up on three days' worth of essential supplies in the event of disruption to essential services.

Mastrolia said: "The increase in demand for our ambient food products following the UK government's be ready campaign further reinforces the relevance of our core categories in providing affordable, nutritious and convenient food solutions."

Princes said that trading momentum remained positive into the fourth quarter and that it was confident in its full-year forecast. It also maintained its medium-term target of a 9% adjusted Ebitda margin.

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