UK: Sales boost earnings at meat firm Hilton Food Group

By Katy Askew | 28 March 2013

  •  Net profit up 1.9%
  •  Revenues up 5.1%
  •  Strong balance sheet to support growth
Hilton sales, earnings rise

Hilton sales, earnings rise

UK meat packer Hilton Food Group has booked a slight increase in profit for 2012, boosted by higher sales in the period.

The company said today (28 March) that net profit grew by 1.9% to GBP18.9m (US$28.6m) in the 12 months to 30 December. Operating profit edged up 0.3% in the 12 months, rising to GBP26m.

Gains were driven by higher sales, which rose 5.1% to GBP1.05bn. Volume expansion contributed 4.8% to revenue gains. The company emphasised the result was achieved in the face of "challenging" market conditions.

Over the 12 months, Hilton also reduced its net debt to GBP5.2m from GBP18.7m. The company said that its strong balance sheet, with gearing at 0.1 times EBITDA, would underpin future growth and a "progressive" dividend policy.

During 2012, Hilton entered into a joint venture agreement with Australian retailer Woolworths Ltd, marking its first expansion outside of Europe. The company said the move illustrated the "transferability" of its business model.

Show the press release

 

Hilton Food Group plc 

Preliminary results for 2012 

WELL POSITIONED FOR GROWTH

Hilton Food Group plc, Europe's leading specialist retail meat packing business supplying major international food retailers in thirteen countries, today announces its preliminary results for the 52 weeks ended 30 December 2012

2012 FINANCIAL HIGHLIGHTS

 

 

 

2012

52 weeks to

30 December 2012

 

2011

52 weeks to

1 January

2012

 

%

Change

 

Revenue

 

 

£1,031.0m

 

£981.3m

 

+5.1

Operating profit

 

£26.0m

£25.9m

+0.3

 

Profit after tax

 

£18.9m

£18.6m

+1.7

Basic earnings per share

 

24.9p

24.7p

+0.8

Closing net debt

 

£5.2m

£18.7m

-72.2

Dividends paid and proposed in respect of 2012

12.0 p

11.1 p

+8.1

 

2012 BUSINESS HIGHLIGHTS

·    Revenue growth of 5.1% to over £1bn.

·    Volume growth of 4.8% despite challenging market conditions.

·    Cash generation of £20.5m, after the maintenance of a high level of investment in equipment and facilities, and a 72% reduction in net debt, from £18.7m to £5.2m.

·    Strong balance sheet with gearing at 0.1 times EBITDA and interest cover at 21 times underpinning future expansion and a progressive dividend policy.

·    Dividends increased by 8.1%

·    The joint venture with Woolworths Limited in Australia announced in January 2013 marks the Group's first expansion beyond Europe into the faster growing Asia Pacific region.                                                                    

 

Commenting, Robert Watson OBE, Chief Executive said:

 

"I am pleased to report that in 2012 Hilton has delivered another resilient performance. The Group has maintained a high level of investment in its meat packing facilities across Europe while exploring opportunities to progressively and profitably expand its business. Our joint venture with Woolworths in Australia represents the Group's first expansion beyond its European heartland and illustrates well the transferability of its business model."

 

Original source: Hilton Food Group

Sectors: Financials, Meat & poultry, Private label

Companies: Hilton Food Group, Woolworths Ltd

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