Hilton Food Group Plc downgraded its full-year profit guidance on Tuesday as it struck a downbeat tone on the outlook for trading in 2026.
In a third-quarter trading update, the company said it now expects adjusted pre-tax profit for the financial year ending 28 December of between £72m and £75m. This is below company-compiled consensus of £76.8m to £81m in September.
"Given the emerging impact on demand from ongoing inflationary pressures and the continued disruption at Foppen, the board has become more cautious on the trading outlook for 2026 and as such expects profit progression in the next financial year to be difficult," it said.
In the third quarter, Hilton said it maintained "a resilient trading performance amid a highly inflationary pricing environment".
Volumes across red meat and convenience remained solid, it said, with convenience in particular continuing to perform well, although ongoing price inflation pressures continue to weigh on underlying demand.
Hilton said the Foppen smoked salmon business in Europe is still experiencing operational disruption due to regulatory restrictions on shipments to the US, which has resulted in additional costs.
"We have implemented actions to address the issues, but the ongoing US government shutdown has resulted in delay to the approvals for the Greek facility to recommence production," it said. "As a result, we do not expect that production in Greece will resume in 2025."