Princes: Branson and Batchelors maker returns to profit as new owner gears up for £700m takeover
Food and drink group Princes swung back into the black in the year before a £700m takeover was announced, according to newly-filed documents.
The Liverpool-headquartered group, which is responsible for making products for brands including Branston, Olivio and Batchelors, made a pre-tax profit of £6m in the year ending March 31, 2024, up from a pre-tax loss of £50m in the 12 months before.
Princes’ return to profitability comes as its new owner, the Italian-based Newlat Food S.p.A, gears up to complete its £700m purchase of the firm from Mitsubishi Corporation by the end of the month, and follows two of the most challenging years in the food group’s history.
More than 450 jobs were cut at Princes during the 24 months ending March 31, 2023, with the food giant reporting a pre-tax loss of £50m in its last financial year despite increasing its revenue from £1.435bn to £1.744bn.
The company’s average number of employees per month was only reduced by 26 in its most recent financial year, with revenue dipping slightly to £1.708bn during the 12 months.
Group ‘positioned for growth’ despite market uncertainty
In a statement published to Companies House, Princes said: “The ongoing impacts of global events such as the cost of living crisis and the conflict in Ukraine have been severe and far reaching.
“However, as our industry and group responds and adapts to change, we are also 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, through to advancing our social sustainability approaches and progressing the group’s inclusion and diversity strategy, Princes is constantly evolving to meet the needs of our customers and consumers.
“While the market outlook remains uncertain, we are well-positioned for growth and looking forward to another productive year ahead, as Princes continues to proudly offer great tasting choices for everyone, without costing the earth.”
What products does Princes make?
The group makes food and drink products for a number of household name brands, including cooking oils for Olivio and Mazola, tinned peas for Batchelors, Italian cooking ingredients for Napolina and baked beans for Branston.
Princes also makes butter products for baking brand Cookeen and plant-based spread for Flora Buttery, which is trademarked by Upfield Foods.
In April the group announced it would begin supplying drinks company Capri-sun with 250m juice pouches per year, creating 50 new jobs at its facility in Bradford.
In addition the company has been producing several products under the Princes brand since its incorporation more than 115 years ago, the most-well known of which is its tinned tuna.
The complete Princes range includes more than 350 food and drink products spanning canned fish, meat, fruit and vegetables.