Princes sees profits jump despite rising costs, eyes new M&A.


Princes Group reported a sharp rise in first-half profits on Tuesday despite "significant" input-cost inflation, with the food and drinks manufacturer saying that recent price increases should provide a boost in the second half.

  • Princes Group
  • 15 September 2026 14:25:49
Princes Group

Source: Sharecast

Profit before tax jumped 62% to £39.2m in the six months to 30 June, while adjusted EBITDA rose 7.5% to £79.3m with the adjusted EBITDA margin unchanged at 7.9%.

Revenue increased 7.1% to £999.4m, helped by recent acquisitions and double-digit growth in the Italian and Oils business units.

Princes said it had maintained margins despite inflation across a number of key input costs, helped by operational efficiencies and disciplined commercial management.

However, the first half was affected by a lag in passing higher costs on to customers, with most agreed price increases taking effect from 1 July – the benefits of which are expected to feed through during the third and fourth quarters.

Princes said it remained "well positioned for the remainder of the year" and continued to trade in line with management's expectations for 2026.

Interim chief executive Giuseppe Mastrolia said the group had demonstrated its ability to "protect profitability through disciplined commercial management and continued focus on operational efficiency".

Underlying free cash flow increased 20% to £90.1m, while net cash rose to £374m.

Princes also said it was in advanced negotiations over two potential acquisitions and expected to complete at least one deal in the coming months.

The stock was up 1.0% at 305p by 1336 BST.

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