Hilton Food is assessing the “strategic options” that might be available to the UK-based private-label protein supplier outside of its core meat business.
That assessment is part of a strategic review launched last year under then CEO Steve Murrells, who unexpectedly stepped down in November.
The conclusions were scheduled to be issued today (29 January) but have been delayed until the meat, seafood, and plant-based proteins supplier publishes its final 2025 results on 31 March.
In a trading update today for the 52 weeks to 28 December, London-listed Hilton Food, currently headed up by executive chair Mark Allen, said the review “is nearing completion”.
The company added: “The review is expected to reinforce Hilton Foods’ focus on the core meat capabilities that have underpinned its long-term success. It is also expected to highlight those areas that sit outside these core competencies and the strategic options available to maximise value for the group.”
Neither Hilton Food nor Allen specified whether those options might include asset disposals. Under Murrells, the Fairfax Meadow UK foodservice meat business was let go last year, sold to Sysco for £54m ($74.4m today).
“Operationally, the review is expected to identify opportunities for efficiencies and investment, including supporting further growth into new geographies,” today’s stock exchange filing read.
Hilton Food stuck with its 2025 outlook today for adjusted profit before tax of £72m to £75m, which had been downgraded from £76.8m to £81m in September.
The company is also now “cautious” on the outlook for the new trading year. That was evident in the lower guidance provided for the profit metric of £60-65m for 2026.
Hilton Food has been facing challenges in its UK seafood business and its Foppen salmon operations in the Netherlands.
Foppen encountered “operational disruption” last year linked to regulatory restrictions on shipping to the US amid the federal government shutdowns in that market. Production at Hilton Foods’ facility in Greece was consequently halted, impacting exports of smoked salmon.
The group said today: “Foppen continues to supply smoked salmon to the US market from its Netherlands facility, following ongoing restrictions imposed at its facility in Greece.
“US stock write-offs are now expected to be significantly higher than previously indicated.”
Allen provided an update: “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.
“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.”
Hilton Food added in the trading update that it expects inflationary pressures in beef and white fish to “continue”, while restrictions on smoked salmon shipments to the US are likely to remain through “at least” the first half of the new year.
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“While we are actively working on opportunities for business transformation and profit improvement against this backdrop, we remain cautious on the outlook for the year,” the statement read.
