Hilton Foods has reported an improvement in performance and profitability in the first half of its financial year, with good performance in its core meat category driving retail volume growth across all operating regions.
The company's seafood business continued its positive momentum, underpinning profit growth in the UK and Ireland.
'Considerable Growth Ambitions'
According to Shore Capital analysts, the 'strong' first-half performance 'reflects a robust core performance and the anticipated profit rebound in UK Seafood.'
Hilton Foods registered volume growth of 3.2%, while revenue increased by 1.0%, on a like-for-like basis, in the first half.
Adjusted operating profit increased by 23.2% on a like-for-like basis, and by 12.2% on a reported basis, to £46.9 million (€55.7 million).
Steve Murrells, chief executive officer of Hilton Foods, added, "Our core product ranges remain highly attractive to both our customers and their consumers, while the breadth of our offering makes us well placed to win across every meal, in both retail and foodservice."
Chairperson Change
The company also announced the appointment of Mark Allen as a non-executive director and chair designate, effective 1 October 2024.
Allen will succeed current chairperson Robert Watson, who will step down from the board, after more than 20 years with the business.
Watson joined Hilton Foods as chief executive in 2002 and assumed the role of executive chairperson in 2018, before transitioning to a non-executive role in January 2021. Watson will continue as a long-term committed investor in Hilton Foods, the company said.
Allen will also join the firm's nomination committee and step in as committee chair from 1 January 2025.
Analysts at Panmure Liberum stated that while Watson's departure 'will be a loss for the business,' the company remains in capable hands. 'Overall, between CEO Steve Murrells and incoming chair Mark Allen, [...] the management team remains highly experienced in consumer products, food retail and the meat category overall.'
