Food manufacturer Hilton Food Group Plc said on Wednesday that it had delivered a "robust performance and further strategic progress" in the six months ended 29 June, despite "challenging" market conditions.
Hilton Food posted a 7.6% increase in interim revenue to £2.09bn, partly due to a 2.5% volume increase, while pre-tax profits ticked up 0.3% to £33.6m. Statutory profit before tax, on the other hand, was down 4.7% year-on-year.
Retail meat and convenience delivered above-market volume growth of 3.1%, with contributions from all regions, supported by strong retail partnerships, efficient operations and a well-aligned product offer. In the UK, Hilton noted that seafood performance was impacted by softer demand for white fish, driven by "significant" raw material inflation.
Hilton also reported an adjusted free cash outflow of £30.8m, compared to a £30m inflow in H124, and said net bank debt increased from £131.4m at year-end to £202.4m.
Looking ahead, Hilton Food expects its retail meat businesses to continue to "perform well" for the remainder of FY25 and said it would continue to address the impact of inflationary trends in white fish and the operational disruption in its Foppen smoked salmon business stemming from regulatory restrictions on shipments to the US.
As a result, Hilton Food expects to deliver full-year profits within the range of expectations of £76.8m to £81m.
Chief executive Steve Murrells said: "The first half of 2025 has been shaped by a strong performance in our retail meat and convenience businesses. We remain committed on delivering our full-year results within the range of expectations. Whilst we have faced market-driven pressures and some specific operational challenges in seafood, we have responded with agility and continue to have a strong platform in place for future growth."
Reporting by Iain Gilbert at Sharecast.com