Ambient food giant Princes has returned to profitability as it gets set to transfer ownership to Newlat.
Revenues edged down from £1.74bn to £1.71bn in the year to 31 March 2024 as volumes declined on the back of the group putting up prices, according to newly filed accounts.
UK sales improved by almost £100m to £1.3bn but the canned food supplier suffered declines in Europe (from £391m to £325m) and in the rest of the world (from £100m to £35m).
Despite the fall in group revenues, Princes bounced back to the black in 2023/24 after being hit with £58m of impairments charges in the prior year.
An improvement in gross margins helped the company post a pre-tax loss of £6.1m, compared with losses of £51m in 2022/23. However, pre-exceptional profits were down on the £7.1m recorded a year ago.
Interest charges on loans doubled to £30m in the latest set of accounts.
A Princes spokesperson said: “Our financial performance to March 2024 was positive, with substantial improvements in profitability from the prior year despite ongoing challenging market conditions.
“We are transforming our business to build a more resilient future and continuing to play an important role in delivering affordable, nutritious food and drink to hard-working families.
“From continued investment in the development of our brands and operations, advancing our environmental and social sustainability approach, and progressing our inclusion and diversity strategy, Princes is constantly evolving to meet the changing needs of our customers and consumers.”
A £700m takeover of Princes by Italy’s Newlat is set to complete by the end of this month.
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