Hilton Foods reports 23% profit rise, plans further expansion amid strong seafood and meat sales
Hilton Foods has celebrated robust first-half results, strengthened by its seafood and core meat sectors, with plans for further growth on the horizon.
The FTSE 250 member experienced a significant boost in adjusted operating profit, posting a 23.2 per cent increase to £46.9m on a constant currency basis, in the six months leading up to 30 June. This marks an impressive recovery following struggles with soaring inflation over the last two years.
During these crucial 26 weeks, the firm saw an increase of 3.2 per cent in overall volume.
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A lucrative period for Hilton Foods also meant statutory profit escalated by 42 per cent to a hearty £43.6m. The ambitious company declared intentions for additional expansion and potential future acquisitions earlier this year.
Cash flow got a shot in the arm, escalating from £18.9m the previous year to an impressive £34.7m in this term. The company also successfully managed to reduce their net bank debt, which previously sat at £216m in July 2023, to just £137m by paying off over £100m, as reported by City AM.
Chief Executive Officer at Hilton Foods, Steve Murrells, CBE, said: “These results represent another step forward as Hilton Foods further improves business performance and profitability.”
Celebrating the success of specific sectors, he acknowledged: “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.”
Former head of Co-op, Murrells is optimistic about the future for the conglomerate: “As I look ahead, Hilton Foods has all the right attributes in place. Our strong financial platform, unique multi-category offer, and market-leading technology adds to my confidence in the Group’s ability to achieve further international growth.”
The food processing behemoth, with operations spanning the UK, Ireland, APAC and a significant part of Europe, has affirmed that its new processing plant in Canada is set for a 2027 launch.
This facility will be a major supplier of meat to Walmart Canada, following a significant long-term supply agreement inked with the supermarket giant towards the end of the previous year.