Hilton Food Group is to focus its efforts on growing its “core” meat and fresh prepared food businesses – and the UK manufacturer wants to “increase strategic optionality” for its seafood and plant-based protein assets.
The UK-listed manufacturer said today (31 March) it had wrapped up a review of its operations that had “reinforced our conviction in the strength of Hilton Foods’ core meat operations”.
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The review was launched last year under then CEO Steve Murrells, who unexpectedly stepped down in November.
Executive chair Mark Allen, who is set to become Hilton’s CEO, said the company’s “growth will be driven by our core meat and fresh prepared food businesses”.
He added: “Our strategic review outlines a clear plan to focus the business on its core capabilities and strengthens our confidence in delivering sustainable long-term growth.”
Hilton, set up in 1994 to run a beef and lamb meat packing facility in England supplying Tesco, has grown to be a business selling to retailers in Europe, North America, the Middle East and Asia Pacific.
The company has also expanded its product set through buying seafood business Seachill in 2017 and Dutch salmon processor Foppen in 2021. The same year, Hilton took full control of vegan and vegetarian product firm Dalco, the Dutch business in which it first invested in 2019.
In Hilton’s most recent financial year, covering the 52 weeks to 28 December, Seachill’s sales volumes fell almost 7%.
Foppen, meanwhile, was hit amid regulatory restrictions on shipping to the US, with production in Greece subsequently halted, impacting exports of smoked salmon.
Dalco volumes grew 8.5%, although the business remained loss-making, Hilton said.
All three businesses have been put under “separate dedicated leadership” the company told investors today, noting it was “limiting future investment” at the operations.
Allen added: “We are executing improvement plans in Seachill, Foppen and Dalco, businesses that have limited synergy with the group’s core capabilities, to increase strategic optionality.”
During the year, volumes from Hilton’s continuing operations increased by 0.2%. It pointed to a “stable performance” from its meat and fresh prepared foods in the UK, Ireland and continental Europe, growth in Asia Pacific and the improved volumes from Dalco.
Revenue from continuing operations increased 10.3% to £4.2bn ($5.56bn).
Operating profit stood at £90.2m, down from £90.4m a year earlier, amid inflation at Hilton’s UK seafood business.
Lower tax expenses meant net profit was higher, rising from £39.2m to £47.5m.
Hilton said its trading in 2026 had so far “been in line with our expectations”. The company said it was “on track” to generate annual adjusted profit before tax of £60-65m. It stood at £69m last year.
Shares in Hilton were up 5.39% at 518p at 12:58 BST.
