Hilton Food Group (LSE:HFG) reported resilient trading for 2025, supported by stable volumes across its core retail meat and fresh prepared foods operations. Revenue from continuing activities increased by nearly 12% on a constant currency basis, demonstrating steady demand despite persistent inflationary pressures across the supply chain.
Adjusted profit before tax from continuing operations declined slightly, slipping around 1% year on year, largely due to weaker performance at the Seachill seafood division. At the statutory level, exceptional costs related to regulatory matters at Foppen were offset by gains from asset disposals and a reduction in net bank debt, helping to stabilise overall financial results.
During the year, the group completed a strategic review aimed at concentrating growth and capital investment on its core meat and fresh prepared food segments. Alongside this shift, improvement programmes are being implemented at Seachill, Foppen and Dalco to enhance operational performance and broaden the company’s strategic options for these businesses.
Looking ahead, management reiterated that profit in 2026 is expected to come in below 2025 levels, reflecting continued challenges within the seafood and specialty food divisions. However, the company pointed to strong core volumes and new contract wins across continental Europe as positive indicators. Hilton Food is also investing in major capacity expansions in Canada, Saudi Arabia and Poland, which it believes will support future growth.
The group remains committed to a progressive dividend policy designed to maintain shareholder returns while supporting longer-term objectives around profit growth, improved cash conversion and stronger returns on capital.
From an investment perspective, Hilton Food’s outlook is underpinned by a relatively attractive valuation and solid financial performance, although operational headwinds and bearish technical indicators present some near-term risks. Strategic initiatives and confidence from insiders nevertheless provide a supportive longer-term outlook.
More about Hilton Food
Hilton Food Group is an international food packing and supply partner for major grocery retailers, specialising primarily in red meat and fresh prepared foods. The company operates highly automated production facilities and long-term retail partnerships across the UK, Europe and newer growth markets such as Canada and Saudi Arabia. Its strategy focuses on expanding into under-served markets while strengthening relationships with global retailers to support long-term growth.
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