Hilton Food Group profits rise on core meat volume growth
- Hilton announced that adjusted pre-tax profit for the first half of the year rose 37.8% to £33.5m
- The company’s revenue fell to £1.9bn but was still up 1% on a like-for-like basis
Hilton Food Group’s profit rose in the first half of the year, driven by significant volume growth in processed meats.
The food packaging giant said adjusted pre-tax profit rose 37.8 percent at constant exchange rates to £33.5 million in the six months to June.
At the same time, the Huntingdon-based company’s statutory pre-tax profit rose 125.7 per cent to £25.4 million.
Tasty results: Hilton Food Group profits rose in first half of the year
Sales fell 8.4 per cent to £1.9bn, but were still up 1 per cent on a like-for-like basis as retail volumes rose across all regions.
Total food volume rose 3.2 percent to 260,907 tons. Growth in the UK and Ireland was supported by key meat and premium products and improved performance in the fish division.
Meanwhile, volumes in Europe increased due to demand for local ready meals in Sweden and Central Europe.
The result allowed Hilton to increase its interim dividend by 6.7 percent to 9.6 pence per share.
Steve Murrells, CEO of Hilton, said: ‘These results represent another step forward as Hilton Foods continues to improve its business performance and profitability.
‘Our core meat category performed particularly well, delivering volume growth, while continued positive momentum in our fish business contributed to profitability.’
Hilton also announced that Mark Allen, the current chairman of Irn-Bru manufacturer AG Barr, will become chairman from early next year.
Allen succeeds Robert Watson, who has been with Hilton for more than two decades, including 16 years as CEO.
Prior to joining AG Barr, Allen was CEO of Dairy Crest Group, the producer of Cathedral City cheddar and Country Life butter, for 12 years until it was acquired by Montreal-based Saputo in 2019.
The former police officer also held non-executive roles at Dairy UK, Howdens Joinery, bakery company Warburtons and kitchen and bathroom products supplier Norcros.
Angus Porter, senior independent director at Hilton, said Allen “brings a wealth of relevant experience in the consumer goods and food sectors and has demonstrated a strong appreciation for Hilton Foods’ strategy and values during the interview process.”
Shares in Hilton Food Group fell 4.8 per cent to 926p on Wednesday afternoon, making it one of the biggest fallers in the FTSE 250.