Hilton Food Group plc have reported a strong Christmas trading period with growth across its global divisions, according to the manufacturer’s full year trading update.
For the full year the Group expects to report results in line with the Board's expectations, which were revised in early November. During the year, there has been continued revenue growth compared to the same period in 2021 and what is described as a “pleasing performance” in the lead-up to the festive period.
In the UK and Ireland, the Group had a strong Christmas trading period, and focused on a number of cost saving initiatives. In addition, Hilton has continued its investments in automation, the benefits of which will be seen in 2023, say the company.
According to the report, recent progress to pass through and mitigate unprecedented inflationary cost increases, particularly in the UK Seafood business, have been encouraging and leave the company “well placed” as it starts the new year. This work has progressed alongside a total business review in UK Seafood, which Hilton said is starting to deliver positive results.
Hilton’s businesses in Europe have performed well with revenue ahead of the previous year, benefiting from the acquisition of Foppen and particularly strong trading in Central Europe, driven by the continued performance of its fresh food business, and its Scandinavian markets.
In its Asia Pacific division, the company saw strong topline growth from its three facilities in Australia and, coupled with the first full year of trading at the New Zealand food park, have delivered further volume and revenue growth.
In 2022 the Group increased investment in its data management system company, Foods Connected, and started new partnerships with Agito and Cellular Agriculture. Hilton said that it continues to be pleased with how each of these businesses has progressed.
Outlook for 2023
Given the recent trading performance the Board remains confident about the outlook for 2023, despite the wider macro-economic challenges. The Group's financial position continues to be strong and the business highlighted its leverage and headroom standing at “comfortable levels.”
In December, Hilton Foods announced its entry into South East Asia through its strategic partnership with Country Foods. The company says it continues to explore wider geographic expansion and opportunities for growth in its existing markets as it delivers on its strategy.
The Group has confirmed that it will publish preliminary results on 5th April 2023.
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