Hilton Food Group profits rise 18% in 2016

Operating profits for the year ended 1 January 2017 at the international meat processor rose 18.4% to £34.3m on the back of a 7.4% rise in volumes to 275,213t and a 7% currency tailwind.

Revenues rose 12.8% to £1.2bn and once favourable currency tailwinds are stripped out, revenues were up 7.2% on a like-for-like basis.

The group said that the higher volumes helped overall and that the UK had a “good performance” and that there was “encouraging growth in its Irish business”.

Hilton generated significant cash during 2016. The group saw its net cash position at year-end rise from £12.7m at the end of 2015 to £32.3m at the end of 2016.

This strong ungeared balance sheet would give the group considerable flexibility for potential future expansion. Earnings (EBITDA) increased 11.4% to £54m.

Its operations in the UK, Ireland, Holland, Sweden and Denmark saw volumes rise 3.8%. This was driven by good volume growth in the UK and encouraging growth in its Irish business. Like-for-like sales grew 7%, reflecting the higher volumes and boosted by the launch of its new meat trading business.

In December 2016, Hilton announced plans to expand its packing facilities in Australia with the construction of a new factory in Queensland with its existing Australian partner Woolworths.

In January 2017, the group announced a joint venture agreement with Sonae Modelo Continente, a Portuguese food retailer. It also launched a UK meat trading company.

Hilton has production facilities in seven countries, including Huntingdon in the UK and Drogheda in Ireland. It supplies Tesco from each of these factories. In 2016, some 74% of the group’s volumes were produced and sold in countries outside the UK.

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