Hilton Food Group (LSE:HFG) reported adjusted profit before tax from continuing operations of £32.8 million for the interim period, down 5.2% year on year but ahead of the company’s expectations.
Revenue increased 11.5% on a constant-currency basis, while volumes rose 2.1%. The group said its core meat and fresh prepared foods operations recorded growth during the period, while seafood business Foppen experienced margin pressures.
Adjusted free cash flow was positive. Statutory profit was affected by exceptional costs associated with export restrictions at Foppen and a non-cash impairment related to the agreed disposal of Hilton Food’s vegan and vegetarian business, Dalco.
Dalco Disposal Agreed as Portfolio Changes Continue
Hilton Food has agreed to sell Dalco as it focuses its operations on meat and prepared foods. The company said the removal of Dalco’s losses is one factor reflected in its revised full-year guidance.
The group has also extended retail partnerships, including its relationship with Tesco in the UK, and continued improvement measures at its UK seafood operation Seachill.
In Central Europe, Hilton Food is expanding capacity in Poland, where fresh prepared foods volumes increased 26%.
Saudi Arabia and Canada Facilities Scheduled to Open
Hilton Food is progressing two international expansion projects.
A facility operated through its Saudi Arabian joint venture is scheduled to become operational in the fourth quarter of 2026. In Canada, a new plant is expected to launch in January 2027, initially handling beef, pork and fish before subsequently adding bacon.
The company expects both operations to begin contributing to earnings during 2027.
Full-Year Adjusted PBT Guidance Raised to £66 Million–£71 Million
Management raised its full-year adjusted profit before tax guidance to between £66 million and £71 million, reflecting the removal of Dalco losses and favourable currency movements.
Hilton Food maintained its interim dividend at the prior-year level.
The group plans approximately £100 million of capital expenditure during 2026. Management expects this spending to increase net bank debt while maintaining leverage within its target range of one to two times adjusted EBITDA.
Hilton Food continues to target medium-term operating profit growth in the mid-single digits, cash conversion and returns on capital above 20%. These remain company targets rather than forecasts of achieved performance.
Hilton Food Group Operations
Hilton Food Group is a UK-based food processing and packing company operating across red meat, fresh prepared foods and seafood.
The group works with supermarket retailers across its existing markets and is expanding its international operations through projects including new facilities in Saudi Arabia and Canada, alongside additional capacity for fresh prepared foods in Central Europe.
Leave a Reply