|
Hilton Food Group PLC on Thursday said it sees adjusted full-year financial results landing in line with expectations, but noted the continued impact of inflation on the business. Shares in the food packaging company slumped 10% to 460.40 pence on Thursday morning in London. Huntingdon, England-based Hilton Food expects adjusted pretax profit for the financial year ended December 28 to be in line with its guided range of between £72 million and £75 million. This represents a decline from the £76.1 million achieved the prior year. Owing to divestments, and a planned partial unwind of inventory to support peak season demand, the company expects net debt to rise around 2.7% to approximately £135 million from £131.4 million. The company reported ‘good’ trading over the festive period across its red meat and salmon categories, and said strong long-term customer partnerships has led to contract renewals in core retail metal partnerships in both Denmark and the Netherlands. Hilton Food added that it continues to supply smoked salmon to the US from its Netherlands facility, as it noted ongoing restrictions at its Greece facility. However, it expects US stock write-offs to be ‘significantly higher’ than previously indicated. Looking at 2026, the company expects restrictions on smoked salmon exports from Greece to the US to remain in place for at least the first half of the year, adding that it sees inflationary pressures from beef and white fish continuing. Hilton Food said it is actively working on opportunities around business transformation and profit improvement with this backdrop in mind, but remains ‘cautious on the outlook for the year.’ The company said it now expects adjusted pretax profit for financial 2026 to be within the range of £60 million to £65 million. In addition, Hilton Food said its strategic review is almost finished, with it set to share its conclusions alongside its full-year results on March 31. ‘We’re pleased that Christmas trading was in line with our expectations, which reflects the continued strength of our partnerships with customers. However, the Group continues to be impacted by the situation at Foppen and sustained elevated inflation levels. Hence, we are taking a cautious approach to guidance for 2026,’ said Executive Chair Mark Allen. ‘Supported by the Board, our strategic review is expected to reaffirm the focus on our core meat capabilities and highlight opportunities to drive sustainable long-term value.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
|
