NewPrinces (NWL) Q4 2024 earnings summary

Executive summary

• 2024 consolidated revenues reached €2.8 billion, nearly flat year-over-year, with strong Q4 growth and positive momentum in milk, dairy, fish, and drinks categories.

• Net profit rose 5.3% year-over-year to €142.3 million, with robust free cash flow and improved financial structure.

• Integration of Princes Group, consolidated from August 2024, progressed well, delivering operational synergies and a more diversified portfolio.

• Net debt (incl. IFRS 16) decreased to €346.2 million, with ND/EBITDA at 1.94x, surpassing deleveraging targets.

• Free cash flow was robust at €225 million, driven by operational improvements and strong working capital management, especially at Princes.

Financial highlights

• Adjusted combined EBITDA reached €177.6 million (6.4% margin), with EBIT up 10.1% year-over-year to €194.5 million and net income up 5.3% to €142.3 million.

• Revenues: €2.8bn in 2024 vs. €2.778bn in 2023; Q4 group revenue up 7.7% year-over-year.

• Net debt (excl. IFRS 16): €246.2m; incl. IFRS 16: €346.2m; ND/EBITDA: 1.94x.

• Underlying free cash flow: €225m, supported by a €140m NWC improvement at Princes.

• Cost of goods sold was €2.3 billion, 16.7% of revenues, down from 17.5% in 2023 due to supply chain synergies.

Outlook and guidance

• 2025 guidance: consolidated revenues above €2.8bn, EBITDA between €210–220m, and net debt between €300–330m.

• By 2030, organic revenues expected to reach €3.3bn (3% CAGR), with adj. EBITDA of €320m (10% margin) and positive net cash position.

• Margin improvement to be driven by integration synergies, procurement savings, and operating leverage.

• Free cash flow projected at €170m annually by 2030; ROCE targeted at 27%.

• Financial expenses expected to decrease by €15 million in 2025 due to bond issuance and lower ECB rates.