NewPrinces (NWL) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw strong margin improvement, record profitability, and significant free cash flow generation, driven by the full integration of Princes Group and rapid realization of operational synergies and cost efficiencies.

• Revenues declined to €672.7M, mainly due to lower average selling prices in a deflationary environment, but cost controls and procurement strategies offset the impact.

• Strategic focus on value creation through internal management, selective external growth, and ongoing reorganization into Milk & Dairy and Food & Drinks divisions, with IPO and London listing under consideration.

Financial highlights

• Q1 2025 revenues were €672.7M, down 3.9% year-over-year, with gross profit at €125.95M.

• Adjusted EBITDA rose 30.5% to €54.8M (margin 8.2% vs. 6%), reported EBITDA up 62.5% to €52.7M.

• EBIT increased nearly 400% to €28.9M (margin 4.3% vs. 0.8%).

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

• Free cash flow was €45M, cash conversion at 84.4% (vs. 74.7%), and net debt (excl. IFRS 16) reduced to €200.7M; net debt (incl. IFRS 16) at €302M.

Outlook and guidance

• Confident in achieving 2025 targets, with further margin and cash flow improvements expected from ongoing synergies, working capital optimization, and new product launches.

• Management expects the Food segment to reach €3B in revenue by end-2025, supported by acquisitions and cross-selling.

• Guidance for net debt seen as conservative; management expects to outperform.

• Additional €100M working capital contribution targeted for the year.

• No significant negative impacts anticipated for 2025; directors confirm going concern status.