Princes Group Q3 2025 Trading Update

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 nine months ended 30 September 2025.

Unless otherwise indicated, the financial information included in this announcement has been prepared on a pro forma basis and reflects the consolidation perimeter set out in the Company's prospectus published on 22 October 2025. Accordingly, the information for the nine months ended 30 September 2025 and 30 September 2024 include the Group's subsidiaries and subsidiary undertakings as at 1 January 2025, together with Symington's Limited, Princes France SAS and Newlat GmbH, as if they had been consolidated for the entirety of the periods presented. The financial information set out in this announcement has not been audited or reviewed by the Company's auditor.

Continuous margin expansion driving group profitability

The Group continued to execute its strategy focusing on margin-accretive growth, operational efficiency and disciplined portfolio management. As expected, the deflationary pricing conditions across several core raw materials impacted revenue, given the Group's pass-through mechanics with customers.

Performance highlights

• EBITDA up 51.5% to £111.1 m, driven by structural margin improvement and synergy delivery
• EBITDA margin expanded to 7.8% (vs. 4.9% at 9M 2024), with notable gains in Italian (+590 bps), Foods (+170 bps) and drinks (+170 bps)
• Underlying Free Cash Flow to £136.5 million, reflecting sustained working capital discipline and supplier management
• Topline performance reflects the deflationary environment in the first nine months of 2025
• Revenue of £1.4 billion, with a focus on earnings quality
• Notable momentum across B2B channel sales (+10% YoY)

Simon Harrison, CEO of Princes Group, commented:

"This has been a milestone period for Princes, with our admission to trading on the London Stock Exchange. We have taken decisive actions to enhance earnings quality, improve efficiency and strengthen our commercial partnerships. We are building a resilient, margin-accretive and customer-led business with a clear path for sustained growth. Our M&A and integration capability set along with the firepower we now have as a group is creating exciting opportunities to pursue value accretive M&A, in line with our stated strategy."

Business Performance

Further margin expansion was achieved through structural improvements across the Group's operations. Key drivers included:

• Operational efficiency gains across UK and international manufacturing facilities
• Improved pricing and product mix discipline
• Enhanced demand planning and waste reduction initiatives
• Exit of low-margin and structurally negative foodservice and private-label contracts
• Strengthened retailer category partnerships in the UK and Europe

Synergy delivery

The Group's synergy delivery programme is progressing in line with plan and remains a key driver of the improvement in profitability. Since the July 2024 acquisition of Princes by NewPrinces, the Company has implemented advanced operational efficiencies and strengthened procurement discipline and supplier management. These actions have contributed to a £74.3 million improvement in net working capital, including an increase in Days of Payables Outstanding to 68 days from 50 days at 31 December 2024. Careful NWC optimisation, as well as operational efficiencies, have resulted in an underlying free cash flow of £136.5 million.

Commercial momentum has been further supported by targeted cross-selling and the expansion of the Group's presence into white space opportunities across existing customers in the UK and continental Europe. These efforts are now being reinforced by a more exciting innovation pipeline, with new product launches and range refreshes scheduled to enter the market over the coming quarters in core growth platforms such as Oils, Italian and Foods.

Net debt

The pro forma adjusted net cash of the Company for the nine-month period ended 30 September 2025 was £268.2 million.

• Cash equivalents comprise deposits with banks and financial institutions. These include deposits with an original maturity of three months or less that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.
• Current financial debt includes amounts payable in respect of leases of £24 million, amounts outstanding on the factoring facilities of £191 million and bank overdrafts of £1 million.
• Current portion of non-current financial debt includes amounts outstanding on the shareholder loans advanced to the Company by NewPrinces S.p.A. (the "Shareholder Loans") of £74 million and the current portion of the facility entered into to acquire the Royal Liver Building and the Thornes Park Business Park in Leeds of £10 million.
• Non-current Financial Indebtedness consists of the non-current portion of the facility entered into to acquire the Royal Liver Building and the Thornes Park Business Park in Leeds of £40 million, £55 million of non-current lease liabilities and the non-current portion of the outstanding amounts on the Shareholder Loan of £354 million.
• The full amount of the Shareholder Loans was capitalised into new ordinary shares in the Company on 5 November 2025 and all obligations of the Company under the Shareholder Loans has been extinguished.
• The impact of the net proceeds does not include any net proceeds which may be received by the Company in relation to the exercise of the over-allotment option granted in connection with the Company's initial public offering.

Outlook

The Group continues to trade in line with expectations and remains confident in the delivery of full-year performance in line with management's internal budget. The operational and commercial improvements achieved during the period are expected to continue to support margin development and cash generation. The Group remains focused on executing its strategy of profitable, cash-generating growth, supported by a targeted pipeline of M&A opportunities in core categories and geographies. The Group is now well-positioned to build sustainable long-term value as a listed business.

The management of the Company confirms its confidence in delivering its medium-term ambitions:

• Incremental revenue of £ 1 - 1.5 bn through M&A
• Organic revenue CAGR: >3%
• Margin improvement >300 bps (EBITDA margin of 9%)
• Maintain leverage ≤ 2.0x
• Return on capital employed: >20%.

Supplemental information

9M 2025 Revenue by Business Unit

• Refers to other income not attributable to the Group's main business units

9M 2025 Revenue by Country

The Group's branded portfolio includes well-known, trusted brands such as Princes, Napolina, Branston, Batchelors, Flora, Crisp 'N Dry, Delverde, 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 £2.1 bn pro forma revenues in the twelve months ended 31 December 2024, employs approximately 7,800 people and operates 23 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.

For more information, visit www.princesgroup.com.