International multi-protein producer Hilton Food Group plc has released its interim results for 2022, which shows volumes have increased by 3.6% compared to 2021 levels whilst profits dropped by 9.7%.
Hilton Foods serves customers and retail partners across the world with meat, seafood, vegan and vegetarian foods and meals. The business is made up of over 6,000 employees, operating from 24 food processing, packing and logistics facilities across 19 markets in Europe, Asia Pacific and North America.
According to the report, volumes are 3.6% higher at 271,708 tonnes compared to 2021’s figure of 262,222 tonnes. Driven by this growth in volumes and raw material price inflation, the Group also saw revenue rise by 20.4% to £2 billion.
Whilst adjusted operating profits remained high at £41.2 million, a 7.3% increase on 2021, adjusted profit before tax was 3.9% lower than that recorded last year. Hilton said that 2022’s results had been impacted by higher interest costs.
Remaining watchful
Commenting on the results chief executive Philip Heffer said: “At a time when inflationary headwinds have become more pronounced, we have made further progress in broadening and deepening our protein offer, while expanding our footprint across international markets. At the same time, we have made ongoing investment to ensure we lead in technology and automation, with sustainability central to everything we do.”
Heffer added that the company “has not been immune” to the impact of heightened inflation. He explained: “While we remain watchful of any near-term changes in consumer sentiment, we believe that our international scale, strong customer relationships, and diversified protein offer leaves us well-placed within a growing global market.”
Growth across the business
The company showed growth across its portfolio, with its meat and seafood division reporting three-year volume growth of 10% per annum. Over the same period, its vegan and vegetarian divisions reported a 40% increase in growth, whilst its added value ranges saw 72% rise.
Earlier this year, Hilton completed the acquisition of Foppen, a specialist smoked salmon business with facilities in the Netherlands and Greece, in March 2022. Commenting on the acquisition, the company said that the move would “enhances [its] existing fish portfolio and is an entry point for [it] into the North American retail market.”
This year, the company has also invested in UK meat technology venture Cellular Agriculture Ltd and increased its ownership of software engineer Foods Connected to 65%.
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