Sees 2024-2030 organic revenue growth 3%/yr (Il Sole 24 Ore Radiocor) - Milan, 04 Jun - The Italian food company Newlat Food expects to have annual sales of 5 billion euros in 2030 thanks to organic growth and acquisitions.

The group, which is due to take over the UK company Princes by the end of July, expects to have an organic revenue growth with a compound annual growth rate of 3% between 2024 and 2030, leading to 3.34 billion euros in revenue in 2030.

"Further contributions to growth may come from operational and commercial synergies between Princes and Newlat Food, while the target revenue of 5 billion euros will be linked to the contribution of further M&A," it said.

The group expects post EBITDA of 317 million euros and an margin of 9.5% in 2030, driven by commercial synergies, improved product mix, an increased contribution from proprietary brands and operating leverage.

Net profit is expected to exceed 100 million euros by 2030, while for the current year, the pro-forma 2024 net profit, with Princes consolidated for 12 months, is already expected to surpass 300 million euros due to a badwill of 288 million, it added.

The group expects a free cash flow level of 172 million euros in 2030.

Newlat said it "plans to rapidly complete the deleveraging process," aiming for a net debt/EBITDA ratio of less than 1x by the end of 2026.

"This financial flexibility will allow New Princes Group to look at further strategic M&A activities to reach 5 billion euros in revenues in 2030," it added.

AAA-Web

(RADIOCOR) 04-06-24 10:44:33 (0239) 5 NNNN