NewPrinces (NWL) Q2 2025 earnings summary

Executive summary

• Revenues reached €1.31 billion in H1 2025, down from €1.36 billion year-over-year, with strong growth in dairy and drinks but declines in foods, fish, and oils due to lower volumes and prices.

• Adjusted EBITDA rose 16.5% to €104.6 million, with margin improving to 8% from 6.6% in H1 2024.

• Net income rebounded from a loss to €22.2 million, with EPS up to €0.48 and ROE at 5.4%.

• Free cash flow was €88.9 million, supported by EBITDA growth and net working capital optimization, with cash conversion at 79.2%.

• Net debt (ex-IFRS 16) reduced to €183.6 million from €246.2 million; including IFRS 16, net debt was €285.1 million, down from €346.2 million.

Financial highlights

• Gross profit increased 8.6% year-over-year to €260.9 million, driven by lower raw material costs.

• EBIT more than doubled to €52.8 million, with EBIT margin rising to 4% from 1.8%.

• EPS rose to €0.48 from €0.19, and ROE improved to 5.4% from -0.3%.

• Net Debt/EBITDA improved to 1.38x from nearly 2x at year-end; gearing ratio reduced to 0.7 from 1.04.

• Cash conversion rate increased to 79.2% from 60.9% year-over-year.

Outlook and guidance

• Full-year adjusted EBITDA guidance of €210–220 million confirmed, with expectations of stronger second-half performance.

• Acquisitions of Carrefour Italia, Diageo Operations Italy, and Plasmon expected to close in H2 2025, with neutral net debt impact and anticipated margin accretion.

• Continued focus on cost optimization, procurement, and supply chain efficiency to support margin improvement.

• Cash generation targets reaffirmed, with working capital actions performing ahead of plan.

• Updated financial guidance to be provided after completion of acquisitions.