Hilton Food Group (LSE:HFG) delivered resilient trading across its core meat and fresh prepared food divisions, supported by strong demand in Australia, New Zealand and Central Europe within its East region. In the West region, volumes edged higher, helped in part by seasonal demand ahead of Easter.
The company said difficult market conditions continue to weigh on its seafood, vegetarian and vegan operations. In response, Hilton Food is pursuing cost-saving initiatives at Seachill, transitioning Foppen exports to the U.S. from air freight to sea freight, and working to improve volumes at its Dalco production site.
Hilton Food also reported continued progress on several strategic commercial and investment projects. These include an extended long-term partnership with Tesco in the UK, a Canadian expansion project that remains on schedule for a full launch in 2027 alongside additional bacon production capabilities, a new Saudi Arabian facility expected to open in the second half of 2026, and plans to expand production capacity in Poland.
Management reiterated its 2026 guidance, forecasting adjusted profit before tax of between £60 million and £65 million, alongside capital expenditure of roughly £100 million. The company said the outlook reflects confidence in both near-term trading and longer-term growth opportunities despite ongoing inflationary and geopolitical pressures.
The group’s outlook continues to be constrained by weaker cash flow visibility and cautious guidance for 2026, which points to pressure on short-term earnings even as profitability remains relatively stable. However, these concerns are partly offset by an attractive valuation, including a low price-to-earnings ratio and strong dividend yield, as well as improving short-term market momentum, although the broader long-term trend remains less supportive.
More about Hilton Food
Hilton Food Group is an international supplier of red meat and fresh prepared foods, working with major retail customers across Europe, Australia and New Zealand. The company has expanded into seafood as well as vegetarian and vegan categories, with a strategy focused on long-term supply agreements and strategic retail partnerships, including its extended collaboration with Tesco in the UK.
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