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Princes Group PLC on Tuesday reported a swing to annual profit and revenue growth, as it warned it will raise prices by at least 5% to offset rising costs linked to the war in Iran. The Liverpool, England-based food and beverage firm said pretax profit totalled £55.4 million in 2025, swinging from a £5.8 million loss the prior year. Contract revenue rose to £1.87 billion from £1.28 billion, reflecting business expansion and acquisitions. Princes said underlying trading remains ‘resilient’ and in line with guidance, as margin expansion and cost-saving measures offset deflationary pressures on raw materials and the exit from lower-margin contracts. Adjusted earnings before interest, tax, depreciation and amortisation rose to £148 million from £65 million, while the company swung to a net cash position of £311 million, compared with net debt a year earlier. The group confirmed its medium-term target of generating more than £3 billion in revenue, supported by ongoing operational improvements and an active pipeline of merger and acquisition opportunities. However, Princes flagged rising cost pressures into 2026, driven by higher energy, transport and raw material costs. It said it is implementing ‘targeted actions’ to mitigate these impacts, including the use of pass-through pricing mechanisms. Separately, the company told customers it would increase prices by at least 5% across its product range, citing disruption caused by the closure of the Strait of Hormuz amid the Iran conflict. According to The Grocer, in a letter to European supermarket customers, commercial chief Giuseppe Mastrolia warned that higher energy and logistics costs required urgent pricing adjustments. In its annual results, Princes said it has secured around 70% of its energy needs for 2026, providing some protection against near-term volatility, while continuing to manage exposure to fuel and freight cost increases. The company expects some negative revenue impact in the first half of 2026 from portfolio optimisation, though it said underlying volumes remain robust and recent contract wins provide visibility into the second half. Executive Chair Angelo Mastrolia said 2025 marked a ‘step-change’ for the group following its London listing, with strong profitability growth and cash generation underpinning its strategy. Chief Executive Simon Harrison added that the company had delivered a ‘robust financial performance’. Shares in Princes were up 4.2% at 388.00 pence in London on Tuesday afternoon. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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