New contracts with Tesco and Waitrose have helped lift Hilton Food Group, according to a trading statement issued by the group this morning.
In the trading update, which covers the period 16 July to date, Hilton said that its performance has been in line with the board's expectations, while 'significant strategic progress' has been made through the recent announcement of a joint venture with Dutch vegetarian product company Dalco.
Close Cooperation
'We have continued to grow the business through additional volumes and close cooperation with our retail partners,' Hilton said, noting that its Seachill business recently won new business to supply shellfish to Tesco, as well as to supply coated fish to Waitrose from March of next year.
'In Western Europe we have made good progress in a number of markets,' the company added. 'In the UK, turnover has continued to grow relative to last year driven predominantly by Seachill, whilst our Irish business has continued to experience encouraging top-line growth'
In Denmark, the group described its performance as 'broadly flat', while Sweden is below the previous year, despite some volume improvement. In the Netherlands, described as a 'challenging' market, Hilton is focusing on new product and packaging development, while its joint venture in Portugal is said to be showing 'good progress'.
Further afield, in Australia, the business has delivered 'double-digit volume growth', with a new Queensland facility set to come on stream in the fourth quarter of next year.
'The Group's financial position remains strong and we continue to explore opportunities to invest in and to grow the business in both domestic and overseas markets,' Hilton Food Group said.
Analyst Viewpoint
Commenting on the group's performance, Darren Shirley of Shore Capital Stockbrokers said, "We remain positive on Hilton Food’s shares, with the investment case underpinned by a broad array of strategic growth opportunities cultivated by a high-quality management team over the past 24 months (Seachill, Australia, pizza, fresh prepared meals, New Zealand, Portugal and Dalco Foods).
"Sustained cash flows and a strong balance sheet and the recent refinancing (committed facility of c£204m; uncommitted accordion agreement in place for £154m) also provide considerable optionality."
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
