News

Princes reports continued growth for 2020/21 financial year

11/01/2022

Group announces operating profit of £47.4m, up 30% from 2019/20

International food and drink group, Princes, has published its latest annual results, revealing a profit growth of 30% in the year to March 2021. The Group has reported an operating profit of £47.4m, up from £33.1m, while revenue increased from £1.533bn to £1.558bn.

Princes Group financial performance – 2020/21

  2021  2020
  £’000  £’000
  Revenue  1,558,575    1,533,093
  Gross profit  280,226    272,353
Profit before tax, excluding restructuring costs and impairment charges  46,235  30,449
  Operating profit  47,482    33,158

Cameron Mackintosh, Managing Director at Princes, said:

“In the 2020/21 financial year, we reported an operating profit of £47.4m, up from £33.1m last year.While spikes in demand during Covid-19 have naturally impacted results as we worked to feed the nation during lockdown, we also experienced significant increases in costs in our business to ensure continuity of supply and the safety of our colleagues.

“It is also clear that the strategic plan we initiated four years ago to drive growth and respond to challenging market conditions is proving successful. This approach, as well as shifts in eating and shopping habits, are continuing to stimulate reappraisal of ambient food, as consumers take a fresh look at the convenience, quality and affordability of the category.

“Over the past year, we have progressed and concluded several landmark development programmes, accelerated our innovation plans to better meet consumer and customer needs, and made important progress in our sustainability and ethical trade agenda – all while adjusting our ways of working and responding effectively to the impacts of the pandemic and Brexit”.

“Today, we are an innovative, consumer-first business which is evolving and adapting to rapid changes across the food and drink industry, and working to support the families we serve. I am incredibly proud of the role that all Princes colleagues have played in driving this transformation”.

“Looking ahead to 2022, we will continue to drive progress to realise our strategic ambitions and growth plans, while striving to achieve our vision of proudly helping families to eat well, without costing the Earth.”

Throughout the Covid-19 pandemic, the dedication of Princes colleagues played a vital role in meeting customer and consumer demand, as well as helping charities in their ongoing efforts to feed the nation and support communities during this challenging time. Since the pandemic started, Princes has distributed over 1,000,000 products across the UK, Italy and Mauritius to food charities, including FareShare with whom it has been partnered in the UK since 2013

Key business developments – 2020/21

Several initiatives have completed or are in progress to ensure Princes can build on its transformational changes, to drive growth and respond to challenging market conditions:

  • Investments of over £150m in UK manufacturing sites are nearing or have reached conclusion, driving efficiencies and excellence in production
  • Princes sold its Eden Valley bottled water site and Aqua Pura brand and no longer operates in the plain bottled water market
  • A three year, £5m innovation project has seen the launch of Innov8, which was recently expanded with a new co-creation initiative for retailers, Co-Labs – which will help Princes customers to embrace emergent trends, utilise cutting edge technology and leverage insight from a now 3,000-strong consumer community, to identify products that will prove commercially successful
  • Sustainability initiatives continue to be a major focus – the Group announced its commitment to achieve carbon neutrality across its UK and international operations by 2030, building on a 23% reduction in carbon emissions since 2014/15
  • Ongoing projects at Princes, and its range of brands, are also set to reduce carbon emissions by 1,100 tonnes and remove 900 tonnes of plastic (the equivalent of over 26 million plastic bottles) from product packaging across the Group, annually
  • In October, Princes announced it has reached its ambitious goal of reducing Indian Ocean yellowfin tuna sourcing by 50% on 2017 levels, a year ahead of its 2022 deadline
  • Committed to reinforcing ethical working practices, the Group also recently expanded a partnership with Italian agricultural association, Coldiretti, to enhance the ethical, environmental, and economic value of the Italian tomato supply chain of its Napolina tomatoes
  • Princes was awarded Employer of the Year at the prestigious Grocer Gold Awards in October for its ‘Our Princes Our People’ programme.

-Ends