Hilton Foods Shares Plunge Despite ‘Robust Performance’

Hilton Foods (HFG.L) today announced its interim results for the 26 weeks ended June 29, 2025, highlighting a challenging economic landscape.

The company reported revenue growth and navigated inflationary headwinds, but also faced operational setbacks in its seafood division. HFG plunged following the report, currently down more than 11% at 725p per share.

Revenue increased by 7.6% to £2.09 billion, driven by a 2.5% increase in volume. On a constant currency basis, revenue was up 10.4%, reflecting the significant impact of raw material inflation across all markets.

Adjusted profit before tax edged up 0.3% to £33.6 million, or 3.0% on a constant currency basis, while statutory profit before tax declined by 4.7%. Adjusted operating profit fell 0.4% to £46.6 million, while statutory operating profit slipped 5.3% to £41.3 million.

The company's adjusted free cash flow showed an outflow of £30.8 million, compared to an inflow of £30.0 million in the prior year. Net bank debt increased to £202.4 million, primarily due to increased tactical inventory holding and capital expenditure in Canada.

The interim dividend was increased to 10.1p, in line with the company's dividend policy.

Hilton Foods faced challenges in specific areas. The UK seafood performance was impacted by softer demand for white fish, driven by significant raw material inflation.

Additionally, the Foppen smoked salmon business in Europe experienced operational disruptions due to regulatory restrictions on shipments to the US. The company has implemented actions to address the issue.

Hilton Foods is strategically expanding geographically, with a joint venture in Saudi Arabia launching in the second half of 2026 in partnership with NADEC, and Hilton Foods Canada launching in early 2027 with Walmart. These expansions are on schedule and are expected to contribute to future growth. They have also welcomed a new strategic partner to Foods Connected in July, strengthening the platform.

CEO Steve Murrells CBE 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.”

He added: “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.”

Hilton Foods expects its retail meat businesses to continue to perform well for the remainder of 2025. The company will continue to address the impact of inflationary trends in white fish and the operational disruption in Foppen. As a result, they expect to deliver full-year results within the range of expectations.