Protein giant Hilton Food Group recorded a significant increase in profits in the first half of 2024, buoyed by strong retail volume growth across all its key global operating regions.
The publicly-listed meat, seafood and plant-based packer and supplier saw pre-tax profits rise by 25.3% to £33.5m in the 26 weeks to 30 June (versus 28 weeks to 16 July in 2023), according to its interim financial results, published today. Sales fell 8.4% to £1.94bn.
Comparable like for like pre-tax profits, however, (calculated on a 26-week constant currency basis) rose by 37.8% to £33.5m, while sales were up 1% to £2.1bn, offset by raw material price deflation in the Asia-Pacific region.
Volumes climbed by 3.2% in trading Hilton described as “in line with expectations”, with the business benefiting from strong increases in sales of meat, supported by a seafood business “that continues to improve, underpinning profit growth in the UK & Ireland”.
Hilton was making “good progress” in developing cross-sell opportunities across the group, while it also stressed its commitment to sustainability, citing progress across all areas, especially packaging.
The accounting period saw free cash flow rise by 85.6% to £34.7m, with Hilton hailing its continuing status as a “highly cash generative business”. As a result, Hilton’s interim dividend of 9.6p per share was up by 0.6p on the same period last year.
‘Well-positioned’ for further growth
The business said it was “well-positioned” for the future, with a strong financial position and in “a large, attractive marketplace, underpinned by long-standing customer partnerships”.
“These results represent another step forward as Hilton Foods further improves business performance and profitability,” said CEO Steve Murrells.
“Our core meat category performed particularly well, driving volume growth, while the continued positive momentum in our seafood business has helped to underpin profit performance.”
Hilton’s core product ranges remained “highly attractive to both our customers and their consumers, while the breadth of our offering make us well placed to win across every meal, in both retail and foodservice”, Murrells added.
The announcement was accompanied by news of the retirement of chairman Robert Watson, after more than 20 years with the business.
Former Dairy Crest CEO and current chair of AG Barr Mark Allen has been appointed as a non-executive director and chair designate with effect from 1 October, and is expected to become chair of the board from 1 January 2025.
Watson said he was “proud of what we have achieved at Hilton Foods and I will step down in the new year with the business in a stronger position than ever before”.
Food sector veteran Allen, who presided over the sale of Dairy Crest to Canadian dairy giant Saputo in 2019, said: “This is a very exciting time for Hilton Foods and I am looking forward to continuing the excellent progress made so far through Robert’s leadership.”
Senior independent director Angus Porter described Allen as “the right successor to the inestimable Robert Watson”.
Allen had “a wealth of relevant experience in the consumer goods and food sectors and, through the search process, showed an outstanding appreciation of the Hilton Foods strategy and values”, Porter said.
“Robert’s contribution to Hilton Foods is immeasurable and on behalf of all Hilton’s people, our customers and investors, I want to thank him for everything he has done to build this business into what it is today,” he added.
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