Hilton Food Group Raises Full-Year Profit Guidance Amid Strong Core Operations and Portfolio Simplification
Hilton Food Group reported stronger-than-expected first-half adjusted profit before tax of £32.8 million, leading to an upward revision in its full-year guidance from £60–£65 million to £66–£71 million. The company attributed the improved outlook to strong performance in core meat and fresh prepared foods operations, particularly in Central Europe where volumes rose 26%. Revenue growth was supported by a combination of higher prices and increased volume across its continuing operations. Despite this positive momentum, operating margins declined due to ongoing challenges at Foppen, Hilton’s seafood business. The division is experiencing margin pressure from salmon pricing and foreign exchange issues, with further losses expected as the company awaits U.S. regulatory clarity. To address these issues, Hilton plans to simplify its portfolio by selling Dalco for £5.4 million and investing in capacity expansions across Canada, Saudi Arabia, and Poland. The board maintained an interim dividend of 10.1 pence per share under a progressive policy. Net bank debt stood at just under £200 million as of the half-year end.
Topics: Dividend Policy Earnings Operational Performance Profit Guidance