Hilton Foods previously made the strategic decision to position themselves in the vegan and vegetarian markets are reaping the benefits.
Hilton Foods saw vegan and vegetarian volumes grow 40% per annum in the 28 weeks to 17 July 2022 over a three year period total group revenue rose 20.4% to £2,038.7m.
The higher sales volumes were enough to fend of a 30bps drop in operating margin to 2.0% as EBITDA grew 5.7% to £66.6m.
However, the issue for Hilton Foods was not the prior year, but how rising prices would impact profit going forward.
Hilton also warned volumes could suffer as a result of the cost of living crisis causing Hilton Food shares to give up a third of their value in early trade on Thursday.
Food Technology
Hilton Foods noted strong growth in their New Zealand markets as well as the rollout of a prototype food park in Sweden.
Hilton continues to focus on protein markets and are investing in UK cultured meat technology ventures in Cellular Agriculture Ltd.
“In the first half of the year Hilton has further strengthened its position as the international protein partner of choice. We have continued to focus on our strategy of diversification and differentiation, driving a further increase in volumes, sales and operating profit,” said Hilton Foods Chief Executive, Philip Heffer.
“At a time when inflationary headwinds have become more pronounced, we have made further progress in broadening and deepening our protein offer, while expanding our footprint across international markets. At the same time, we have made ongoing investment to ensure we lead in technology and automation, with sustainability central to everything we do.”