Hilton Food trading in line with expectations
By Michele Maatouk
Date: Thursday 31 Oct 2019
(Sharecast News) - Hilton Food said on Thursday that its performance from 15 July to date has been in line with the board's expectations as it continues to grow the business through additional volumes and close cooperation with its retail partners.
The group said it made good progress in a number of markets in Western Europe.
In the UK, meanwhile, it made "significant" strategic progress with an agreement to pack all of Tesco's red meat. As a result, turnover in the UK has continued to grow, driven mainly by Tesco red meat volumes and increased volumes in seafood division Seachill, where it has secured new business wins.
Volumes remain relatively flat in both Sweden and Denmark, where it recently started to sell pizzas. In Holland, red meat volumes were lower than last year but Hilton said it has benefitted from vegetarian and vegan products produced by Dalco, with listings now secured with a number of its retail customers. It has also extended the range of products with existing Dalco customers.
The joint venture in Portugal is continuing to show good progress and in Central Europe, volumes have remained challenged as reported at the half year. Hilton saw double-digit volume growth from its business in Australia.
"The group's financial position remains strong and we continue to explore opportunities to invest in and to grow the business in both domestic and overseas markets," it said.
At 1040 GMT, the shares were up 3.2% at 1,042p.
Shore Capital said: "Hilton Foods is a class act in the mid-cap consumer arena that we forecast to deliver a three-year (FY2018A-FY2021F) earnings per share compound annual growth rate of more than 10% with good visibility from an expanding portfolio of proteins.
"With ambitions to continue to grow across the UK and in overseas markets, and the balance sheet and cash flow to support such ambitions, we reiterate our 'buy' recommendation."
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