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Highlights

  • Hilton Foods reports H1 2025 revenue up 7.6% to £2.09bn, with volume growth of 2.5%.

  • Adjusted profit before tax increased to £33.6m, while statutory profit before tax declined 4.7%.

  • Strategic expansion underway with Saudi Arabia JV launching H2 2026 and Canada operations with Walmart starting 2027.

Hilton Foods (LSE:HFG) has announced its interim results for the 26 weeks ended 29 June 2025, highlighting continued growth in its retail meat and convenience businesses alongside progress on strategic expansion initiatives, despite challenges in seafood and smoked salmon operations.

The Group reported a 2.5% increase in volumes and revenue growth of 10.4% on a constant currency basis, reflecting significant raw material inflation across global markets. On a reported basis, revenue rose 7.6% year-on-year to £2.09 billion.

Adjusted profit before tax increased by 3.0% on a constant currency basis to £33.6 million, up 0.3% on a reported basis. Statutory profit before tax fell 4.7% as inflationary pressures weighed on margins. Adjusted free cash outflow for the period stood at £30.8 million, compared with a £30.0 million inflow in 2024.

Net bank debt rose to £202.4 million, compared with £131.4 million at year-end 2024. The increase was attributed to tactical inventory holdings and capital expenditure in Canada. Net debt as a proportion of adjusted EBITDA stood at 1.3x, up from 0.9x at year-end 2024. The Board declared an interim dividend of 10.1 pence per share, up from 9.6 pence in 2024, in line with the Group’s dividend policy.

Business Performance

Hilton’s retail meat and convenience segment delivered above-market volume growth of 3.1%, supported by retail partnerships, efficient operations, and a well-aligned product offering. However, seafood performance in the UK was affected by lower demand for white fish, which faced significant raw material inflation.

In Europe, the Group’s Foppen smoked salmon business experienced operational disruption due to regulatory restrictions on shipments to the US. Mitigation measures have been implemented to address the issue.

The Group’s digital supply chain platform, Foods Connected, welcomed a new strategic partner in July, aimed at accelerating its growth opportunities.

Strategic Expansion

Hilton Foods continues to advance its geographical diversification strategy. A joint venture in Saudi Arabia with NADEC is scheduled to launch in the second half of 2026, marking a significant step in the Group’s Middle Eastern expansion. In North America, Hilton Foods Canada is set to commence operations in early 2027 in partnership with Walmart, further broadening its international presence.

Outlook

Looking ahead, Hilton Foods expects its retail meat business to continue performing well through the second half of 2025. Full-year results are expected to be delivered within the range of market expectations.