Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Berenberg maintains a Buy rating on Hilton Food Group with a price target of AUD 2,060, indicating a potential upside of 66.7%.

  • Panmure Liberum reaffirms its Buy rating with a target of AUD 2,027, reflecting an expected gain of 63.6%.

  • Hilton Foods delivered 7.6% revenue growth in its interim results for the 26 weeks to 29 June 2025.

Hilton Food Group Plc (LSE:HFG), a leading international food processing and packing company, has received Buy recommendations from both Berenberg and Panmure Liberum.

Berenberg analyst Matthew Abraham reaffirmed a Buy rating on Hilton Foods with a price target of AUD 2,060. This target represents a potential upside of 66.7% compared to the company’s most recent trading price.

Similarly, Panmure Liberum analyst Anubhav Malhotra reiterated a Buy rating, assigning a target price of AUD 2,027, equivalent to a forecasted upside of 63.6% from current levels.

Interim Results Overview

For the 26 weeks to 29 June 2025, Hilton Foods reported statutory revenue of AUD 4.14 billion, representing an increase of 7.6% compared with the same period in 2024. On a constant currency basis, revenue rose 10.4%, reflecting growth across all markets.

Adjusted profit before tax reached AUD 67 million, up 3.0% on a constant currency basis and broadly in line on a reported basis. Statutory profit before tax declined 4.7%, impacted by inflationary pressures and disruptions in specific business segments.

The company declared an interim dividend of AUD 0.20 per share, up from AUD 0.19 per share in the prior year, in line with its dividend policy.

Operational Highlights

Hilton Foods’ retail meat and convenience division reported above-market volume growth of 3.1%, driven by contributions from all geographic regions. This performance was delivered against a backdrop of significant raw material inflation.

In the UK, seafood sales were affected by reduced demand for white fish due to rising input costs. Meanwhile, in Europe, the Foppen smoked salmon unit experienced temporary operational challenges due to regulatory restrictions on shipments to the US. The company has implemented measures to mitigate these impacts.

Strategic developments included the onboarding of a new partner to Foods Connected in July 2025, strengthening Hilton Foods’ platform capabilities. The Group also confirmed its geographical expansion timeline, with a Saudi Arabia joint venture set to launch in H2 2026 and Hilton Foods Canada expected to begin operations in 2027 in partnership with Walmart.

Outlook

Hilton Foods expects its retail meat businesses to continue to deliver consistent performance through the second half of 2025. Management also anticipates ongoing progress in addressing inflationary challenges in white fish and operational recovery within the Foppen business.

Looking further ahead, Hilton Foods believes its established customer partnerships, global presence in growth markets, and processing expertise provide a platform for sustainable long-term growth.