The results, now available on Companies House, reveal that the losses occurred despite revenue increasing from £1.4bn in 2022 to £1.7bn in 2023. Princes put the rise in revenue down to inflation.
The update also shows that the firm cut its headcount by 166 during the 12-month period in question, with its overall employee numbers falling from 6,475 to 6,309. The firm cut 300 in the prior financial year, but posted a pre-tax profit of £28.9m.
Headquartered in Liverpool, the group was acquired by Mitsubishi in 1989. However, Sky News reported last month (December 2023) that private equity firm Epiris and Italian food manufacturer Newlat retain an interest in acquiring Princes, which Mitsubishi is looking to sell.
However, neither has yet reached a deal with the group’s parent company, with Mitsubishi said to be holding out for £400m.
Commenting on the results, Princes managing director Cameron Mackintosh said that excluding restructuring and impairment charges worth £57.4m, the group posted a pre-tax profit of £7.2m for the 2022/23 financial year.
Mackintosh added that the results were "primarily driven by extraordinary inflationary pressures resulting in increased direct material and operational costs reducing the gross profit percentage from 17.6% to 15.3% coupled with inflation increasing overheads and higher interest costs during the period".
“Despite another challenging year for the food and drink industry, Princes Group remained resilient, continuing to adapt, transform and make important strides towards our targets," he continued.
“From further 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 changing needs of our colleagues, customers and consumers – ensuring we are well-positioned for growth in FY23/24.
“Since the end of the reported financial year in March, we have seen significant improvements in our financial performance, and we want to build on this progress into next year.”
In other news, UK poultry manufacturer Bernard Matthews has proposed the closure of its Great Witchingham site in Norfolk.
