NewPrinces, sitting on a swing after the accounts

(Il Sole 24 Ore Radiocor) – The market takes stock on NewPrinces’ first nine months: shares in the agri-food giant opened trading down by over 12 per cent after releasing its quarterly figures before the opening bell, before turning positive and changing direction several times. The group reported, as at 30 September , that revenue had more than doubled to 4.55 billion euros, but it failed to end the nine-month period in profit. On the contrary, the company recorded a loss of 5.5 million, despite having posted a profit in the third quarter as well, for the second consecutive quarter.

 According to a statement, the results as at 30 September were adversely affected by external and temporary factors. Firstly, management cites the seasonality of retail: around a third of the GS network is located in Lombardy, where demand falls in July and August due to the summer holidays, impacting both revenue and margins for the period. Secondly, energy costs: the sharp rise in electricity prices, combined with the exceptionally high summer temperatures, necessitated very intensive use of air-conditioning systems in shops and factories. The tomato season alone, which ran from July to September, resulted in higher energy costs of around 2.5 million euros. Finally, transport costs: high fuel prices led to a significant increase in logistics costs. Overall, management estimates that the higher energy and transport costs amounted to around 19 million in the third quarter. Excluding this impact, the group states that the net profit for the first nine months would have been positive by around 14 million (estimate before the related tax effects).

Meanwhile, the group continues to focus on operational efficiency and disciplined management of its product portfolio. On the retail front, a significant step forward has been taken thanks to the agreement with the Tosano Group, under which GS will lease 15 business units comprising hypermarkets and large retail outlets, with provision for subsequent purchase options, as well as the development of 13 properties owned by GA included within the scope of the contract. The economic value of the transaction is estimated at approximately 753 million over a twelve-year period, of which 453 million represents potential contractual value (to which must be added the positive impact of the disposal of stock), approximately 180 million in avoided operating losses and approximately 120 million in avoided investments. The group has also confirmed its guidance for 2026, despite concerns regarding the international geopolitical context, characterised by high levels of uncertainty and instability which are likely to continue to affect fuel and energy prices – factors that have already had a negative impact on the group’s results.