NewPrinces (NWL) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw strong margin and cash flow gains, with EBITDA up to €54.8M (8.2% margin) and net income at €13.5M, despite a 3.9% revenue decline to €672.7M due to deflationary pressures and lower average selling prices.

• Full integration of Princes Group drove significant synergies, operational efficiencies, and rapid reorganization into two main business units: Milk & Dairy and Food & Beverage.

• Strategic focus on value creation through internal management, cost controls, and working capital optimization.

• Group is considering further acquisitions and a potential IPO/London listing for the Food business.

Financial highlights

• Revenues were €672.7M, down 3.9% year-over-year, mainly due to lower average selling prices in a deflationary market.

• Adjusted EBITDA rose 30.5% to €54.8M (margin 8.2%), and reported EBITDA up 62.5% to €52.7M.

• EBIT increased nearly 400% to €28.9M (margin 4.3%).

• Net income improved from a loss to €13.5M (net margin 2%).

• Free cash flow was €45M, with cash conversion at 84.4%.

• Net debt (excl. IFRS 16) reduced to €200.7M; total net debt at €302M, down from €346.2M at year-end 2024.

Outlook and guidance

• Confident in achieving 2025 targets, with further margin and cash flow improvements expected, especially from drinks and working capital optimization.

• Working capital expected to contribute an additional €100M in 2025.

• Incremental revenues anticipated from cross-selling and new product launches, particularly in drinks and fish.

• Directors see no significant negative impacts for 2025 and confirm going concern status.