Hilton Food Group PLC (LON:HFG) have continued their fine run of form giving shareholders a positive update.
The firm reported that it had traded strongly and that Australian operations had succeeded particularly well.
Hilton said that the yearly performance ending December 29 met board expectations saying that growth sales and volumes were strong.
Australia was the best performer, Hilton said, with year-on-year growth also strong. This reflects volumes from a new plant in Brisbane and higher volumes from the existing site in Victoria.
Looking at Europe, the firm has gained a boost as it now packages all of Tesco’s (LON:TSCO) lam and beef.
Seachill, a Hilton subsidiary, benefited from a full year of working with Tesco’s seafood unit as well as Waitrose’s breaded products.
The firm said that trading in the rest of Europe was “generally” good.
Notably, sales in Denmark have risen however this was offset by a dip in sales in Sweden and the Netherlands, however the firm still remain confident.
Central Europe did well, Hilton said, while Dalco, its vegetarian and vegan business, has also “progressed well”. Dalco has secured a number of new contracts, it added.
Hilton has had a reputation of performing strongly in the UK market, as the UK makes up over 50% of its revenue.
The Netherlands comes second with 18%, Sweden with 13%, Denmark with 6%, while Australia made up 1%.
The firm commented “Hilton’s trading outlook remains positive, with significant growth prospects underpinned by the previously announced expansion plans in Australia, in Central Europe (Fresh Food) and subsequently in New Zealand, as well as further opportunities arising from the move into fish via the Seachill acquisition and the roll-out of vegetarian products. Hilton’s financial position remains strong, underpinned by good operating cash flow and with incremental facilities to fund additional expansion opportunities. Hilton remains well placed to deliver continued growth over the medium term enhanced by further opportunities to develop our cross category business in both domestic and overseas markets.”
Hilton continues to flourish
The firm has seen a very productive few months, as it reported a solid half year of trading in July. In a trading update for the 28 weeks to the 15 July the company reported growing UK turnover, with “encouraging” growth in its Irish business.
Its business in Holland reported lower turnover than in 2017, but the group added that in Portugal “good progress” was being made.
The company also said first-half double-digit growth was achieved in Australia.
In October, the firm said that it was meeting expectations across the quarter.
Hilton stated that despite progress relating to the Fresh Food Factory, volumes remained ‘challenged’ in Central Europe. However, the Company has achieved growth in turnover alongside strategic progress in Western Europe and the UK, owing to an agreement with Tesco.
“In Western Europe we have made good progress in a number of markets. In the UK, we made significant strategic progress with an agreement to pack 100% of Tesco’s red meat.Turnover in the UK has therefore continued to grow driven predominantly by higher Tesco red meat volumes as well as increased Seachill volumes, where we have benefitted this year from the new business wins.”
The Group concluded by stating that its financial position remains strong and that it continued to explore investment opportunities.
Shares of Hilton Food Group trade at 1,070p (+1.71%). 9/1/20 11:54BST.
