NewPrinces (NWL) Q3 2024 earnings summary

Executive summary

• Combined nine-month 2024 revenues reached €2.03 billion, slightly below €2.08 billion in 2023, with strong volume growth offsetting lower average selling prices and a marked Q3 recovery.

• Princes was consolidated from August 2024, with integration and synergy projects underway to streamline business units and enhance operational efficiency.

• UK now accounts for over 50% of group revenues, with strong outperformance versus the market despite a deflationary environment.

• Free cash flow exceeded €120 million, driven by operational performance and working capital improvements, especially at Princes.

• Net profit for the nine months was €170.8 million, up sharply year-over-year, supported by the Princes acquisition and organic growth recovery.

Financial highlights

• Adjusted EBITDA for the period was €127.8 million (margin 6.3%); full-year 2024 EBITDA expected between €175–180 million.

• Combined EBIT reached €191.5 million, up from €164.2 million year-over-year, with a €158 million gain from the Princes business combination.

• Net income for the nine months was €153.4 million, compared to €133.3 million in 2023; basic and diluted EPS were €3.84, up from €0.37.

• Free cash flow exceeded €120 million, supporting deleveraging and integration initiatives.

• Net debt (ex-IFRS 16) improved to €332.7 million from €354.2 million at end of August; including IFRS 16, net debt was €436.8 million.

Outlook and guidance

• 2024 revenue guidance is €2.7 billion, with EBITDA of €175–180 million and net debt/EBITDA below 2.5x.

• 2025 guidance targets revenues over €2.8 billion, EBITDA of €210–220 million, and net debt/EBITDA between 1.36–1.76x.

• EBITDA improvement in 2025 is expected from integration projects, new contracts, and ongoing optimization, rather than broad price increases.

• Plans to issue a bond in H1 2025 to optimize debt costs and support future growth and M&A.