Seafood helps Hilton to profit growth for H1 2024
Continued improvement in the seafood sector has helped the Hilton Food group achieve growth in profits for the first half of this year.
In its interim results for H1, Hilton reported revenue of £1.9bn and adjusted pre-tax operating profit of £33.5m, representing respectively a revenue fall of 8.4% year-on-year and profit growth of 25.3%.
On a constant currency basis (applying a fixed exchange rate to offset the negative impact of currency fluctuations), the company reported revenue growth of 1% and pre-tax profit growth of 37.8%
Volume traded was 260,907 tonnes, down 4.2% on H1 last year.
The company reported a strong free cash flow of £34.7m (2023: £18.9m) and remains a highly cash generative business.
The board said Hilton’s seafood business continues to improve, underpinning profit growth in UK & Ireland, while its core meat category is delivering strong retail volume growth across all operating regions.
The group’s Foods Connected business has won a new global contract with fast food giant McDonald’s.
Hilton is paying an interim dividend of 9.6p.
Steve Murrells CBE Hilton Foods Chief Executive Officer, said: “These results represent another step forward as Hilton Foods further improves business performance and profitability. 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. Our core product ranges remain highly attractive to both our customers and their consumers, while the breadth of our offering make us well placed to win across every meal, in both retail and food service.
“The hard work of all our teams, coupled with our proprietary technology and market-leading innovation, has underpinned the strength of our relationships with customers during the period. I would like to take this opportunity to thank all my colleagues for their ongoing commitment.
“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.”
Mark Allen (L) & Robert Watson
Meanwhile, Hilton has announced the appointment of experienced business executive Mark Allen OBE as a Non-Executive Director and Chair designate with effect from 1 October 2024. He will become Chair of Hilton Foods’ Board from 1 January 2025, at which time Robert Watson OBE will step down from the board, after more than 20 years with the business.
Mark Allen is currently Chair of soft drinks group AG Barr, a role he took up in March 2022. He was previously CEO at Dairy Crest Group from 2007 to 2019 and has held non-executive director roles at Halo Foods, Warburtons, Dairy UK, Howden Joinery Group and Norcros, where he was Chair.
