The Hilton Food Group has reported that its financial position remains strong after a good first quarter performance, underpinned by good operating cash flows.
The UK-based meat packing business said that trading from the start of the year has been ‘in line’ with the board’s expectation. The company added that it has 'continued to grow by developing the business in existing markets and also through our geographic diversification.’
Progress
Western European markets saw good progress, according to the report. UK turnover continued to grow relative to the same period last year, ‘reflecting higher raw material pricing and some trading up’. The company's Irish and Swedish businesses have displayed ‘encouraging top-line growth’.
It also said that its new store in Portugal is already seeing improvements in customer KPIs. The majority of the redevelopment of its production line is finished, and the company says that its logistics automation is scheduled as its next step.
In Australia, Hilton said it has seen strong volume growth in the joint venture covering its Bunbury and Victoria sites. It said the development work in relation to the Queensland site has 'continued in line with plan, with a site having been identified for the construction of the plant and planning permission having been lodged.’
Some Slow Starts
The company admitted that the Netherlands experienced a slow start in comparison to the other markets, but Hilton are happy with the positive signals it has shown moving forward. It also added that Danish turnover is more stable.
Hilton also admitted that Central Europe was experiencing a much bigger challenge. Hilton has suppliers in seven countries in the region, and it said that this struggle is to be expected, adding that it has implemented ‘a number of changes including the expansion of the product range’.
The group expects to issue its half year results for the 28 weeks ending 16 July on 12 September 2017.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O’Sullivan. Click subscribe to sign up to ESM: The European Supermarket Magazine.
