Hilton Food Group eyes further expansion and more takeovers

Hilton Food Group is planning further geographic expansion and potential acquisition deals after profits rose by almost two-thirds last year.

The food packaging company, which supplies major supermarkets such as Tesco, Morrisons and Waitrose, reported huge pre-tax profit growth of 64.2 per cent to £48.6 million in 2023.

The UK fishing industry returned to operational profitability thanks to price increases and new business contracts, after being hit hard last year by rising cost inflation and supply chain disruption.

Hilton’s core meat segment also performed strongly despite volume growth in the Asia Pacific region and a ‘resilient performance’ in the UK and Europe.

In the British Isles, the company’s revenues rose 3.7 percent at constant exchange rates to £1.33 billion, as increases in commodity prices offset falling volumes.

At the same time, sales in Europe were boosted by greater demand for simple meals in Scandinavia and Central Europe, and by the acquisition of the Dutch smoked salmon processor Foppen.

Steve Murrells CBE, CEO of Hilton Foods, said: “Over the past year we have remained focused on executing our strategy, which has resulted in strong performance in a challenging market.

“I am particularly pleased with the results in our seafood category, which is returning to full-year operating profitability after a successful turnaround.”

Much of Hilton’s recent expansion has come from acquisitions, followed by catering butcher Fairfax Meadow and plant-based food producer Dalco.

While the company wants to grow further by acquiring companies, the company is also considering gaining a foothold in more countries and seeking ties with prominent brands.

Last year, the Huntingdon-based company entered into a partnership with Walmart to supply meat and seafood to the US retail giant’s Canadian hypermarkets.

It was the first acquisition led by Murrells, who took over as CEO last year following the departure of co-founder Philip Heffer.

Before joining Hilton, Essex-born Murrells, 58, led the Co-Operative Group between 2017 and 2022 and held senior positions at Tesco, Sainsbury’s and Danish meat company Tulip, which later changed its name to Pilgrim’s Pride.

Adam Vettese, analyst at eToro, said: “The recovery has been a bit rocky for Hilton Food Group, but they appear to be turning the corner with some more meat on the bone in this latest set of results.”

Hilton Food Group shares were up 2.1 per cent to £8.72 on Wednesday morning and have risen by around a quarter in the past twelve months.