Newlat Food, the Italian food conglomerate, delivered a strong increase in profitability and cash generation in the first quarter of 2025, despite a marginal dip in revenues. The period marked the first full-quarter consolidation of UK-based Princes Limited, acquired in 2024, and reflects early benefits from the integration alongside easing input costs.
Consolidated revenues fell slightly to €672.7mn, from €699.9mn a year earlier on a comparable basis. However, adjusted EBITDA rose 30.5 per cent year-on-year to €54.8mn, with margins improving to 8.2 per cent from 6 per cent. Reported EBITDA climbed 62.5 per cent to €52.7mn.
Operating profit surged to €28.9mn, up nearly fivefold from €5.9mn, while net income swung to €13.5mn from a €2.3mn loss in the same period last year. Shareholders approved a corporate rebrand to NewPrinces SpA at the end of April.
NEWLAT SEGMENT PERFORMANCE
Business unit performance was shaped by falling raw material costs and lower average selling prices, though volumes remained stable or grew in several segments:
Dairy: Revenues down 5% to €75.3mn on price declines; volumes flat, with growth in mascarpone.
Food: Fell 10% to €194.6mn, reflecting weaker pricing and lower baked beans volumes.
Beverage: Up 7% to €88.4mn, driven by strong volumes and favourable product mix, notably in juices and carbonated drinks.
Fish: Declined 6% to €107.5mn due to price effects; volumes stable.
Italian Products: Down 2% to €114.7mn, as price softness in pasta and bakery offset stable demand. Commercial synergies with Delverde products in Germany supported sales.
Oils and Other Products: Flat at €89.4mn and €2.8mn respectively.
GEOGRAPHICAL TRENDS
Sales by geography also reflected downward pressure on average prices:
Italy: Revenues declined 7% to €99.3mn amid lower pricing in dairy and bakery, and softer volumes in toast bread.
Germany: Down 14% to €41.7mn due to the end of low-margin private label contracts in canned vegetables; pasta volumes held.
United Kingdom: Eased 2% to €422.4mn, supported by solid food and fish volumes despite pricing headwinds.
Other Markets: Declined 2% to €109.4mn, largely due to pricing effects.
OUTLOOK OF NEWLAT, NEWPRINCES
Following the integration of Princes, Newlat has restructured into two divisions: Milk & Dairy (approx. €350mn annual revenues) and Food & Drinks (approx. €2.45bn). Management forecasts the Food & Drinks arm will exceed €3bn in revenues by year-end, underpinned by further M&A activity.
On 13 May, the company confirmed exclusive talks to acquire Diageo’s Santa Vittoria d’Alba facility in northern Italy, focused on ready-to-drink and low/no-alcohol beverages.
With Princes now serving as the group’s international food hub, the board is exploring strategic options—including a potential IPO and partial listing in London—though no final decision has been taken.
L’articolo Newlat Food Reports Growth in Profits and Margins in Q1 2025 proviene da Italianfood.net.
