Hilton Food Group posts growth in full year results

Operating profit for the manufacturer was up 59.4% to £86.1m for the period, with sales worth £3.99bn – up 3.7% from 2022.

Profit across all regions the meat processor operates in was up, with the UK seeing the most significant jump in earnings during the reported period – more than doubling to £35.5m.

However, volumes decreased for Hilton last year in both the UK and Europe (3% and 2% respectively). Like many food and drink businesses, this decrease in volume was countered by an increase in raw material prices.

Asia-Pacific success

Despite this, Hilton’s operations in the Asia-Pacific region saw volumes increase by 7.2%, driven by the group’s partnership with Australia retailer Woolworths.

A strong turnaround of the manufacturer’s seafood business provided further support, returning to full year operating profit.

Commenting on the results, Hilton Foods chief executive Steve Murrells said: “Over the past year we've remained focused on executing our strategy which has resulted in a good performance against a challenging market. ​

“I am particularly pleased with the results in our seafood category, returning to full year operating profitability following a successful turnaround. Our core meat category performed strongly and we worked closely with customers to offer the highest quality and most relevant food products to consumers.”​

Exceptional costs

Hilton continued to incur costs related to a fire at its facility in Belgium in 2021. Exceptional costs totalling £7.7m (2022 cost £9.5m) were recognised in the period relating to additional costs incurred in continuing to operate in Belgium, including the ongoing insurance and legal claim.

An exceptional impairment charge of £1.2m was recognised in relation to the closure of one of the groups vegan processing sites as it optimised production and drive efficiencies at a single factory to create a ‘centre of excellence’.

“As I set out at our investor day in November, Hilton Foods has the right attributes in place to unlock growth organically and with new customers thanks to our multi-category product offer, industry leading technology and rigorous sustainability credentials,” ​Murrells added.

“I'd like to thank all our teams across our markets for their continued hard work and contribution over the year; we are well-placed as we look to the future.”​

Meanwhile, supermarket chain Morrisons posted a 4.6% increase in like-for-like sales​​ during the 13 weeks from 30 October 2023 to 28 January 2024.