Hilton Food Group ‘Well-Positioned’ For Year Ahead Despite Challenging Conditions

Multi-protein food business Hilton Food Group (LON: HFG) reported a solid trading performance in an update Monday. 

The company said both volumes and sales have surpassed last year's figures in the period from January to date, meeting expectations despite lower raw material prices in some markets.

In the UK and Ireland, significant growth in volume and revenue was driven by a strong Easter trading period and slowing inflation. The turnaround in the UK Seafood segment is also gaining momentum. 

In Europe, the company said core meat and ready meals businesses are performing well, with volume and revenue exceeding last year's levels.

In the Asia-Pacific region, Hilton Foods' facilities in Australia and New Zealand have returned to normalised growth following a strong 2023, with revenue slightly impacted by product mix changes and deflation. 

Meanwhile, in North America, Hilton Foods is progressing with its partnership with Walmart in Canada, on track for the 2027 launch of a multi-protein facility handling various products and robotised order-picking services.

With trading currently in line, looking ahead, the company remains confident about its prospects, believing it is well-positioned, supported by its strong multi-category offerings and financial position. 

According to data compiled by TradingView, analysts are mostly bullish on Hilton Food shares, which are up over 16% this year. Four out of five analysts have a Buy rating on the stock, with one assigning it a Hold rating. The average price target of 1,074p represents a potential 14% upside from current levels. 

At the end of April, analysts at Deutsche Bank initiated coverage of Hilton Food with a Buy rating and 1,105p price target, stating the company's end-to-end supply chain leadership delivers best-in-class products for customers, pushing footfall in key categories and contributing to improved retailer performance.