Hilton Food Group shares soar as food supplier upholds guidance

Hilton Food Group shares soared on Thursday after the food packaging business said full-year results were expected to align with management forecasts following a ‘pleasing performance’ in the run-up to Christmas. 

The Huntingdon-based firm, which supplies meat to Tesco supermarkets, lowered its profit outlook back in September, partly blaming rising interest rates and start-up expenses related to its New Zealand food park. 

Two months later, it issued another profit warning because of pressures affecting its UK seafood operations and a more challenging economic backdrop.

Delicious: Huntingdon-based Hilton Food Group supplies meat to Tesco supermarkets

But in the past two months, the company said it had made ‘encouraging’ progress in passing on cost hikes to customers and experienced a robust festive trading season across the British Isles. 

Bosses now anticipate annual results covering the 12 months ending 1 January will be in line with the revised guidance set out in November.

Hilton Food Group shares reflected this upbeat assessment on Thursday, climbing by 12.8 per cent to 618p, making it the FTSE 250 Index’s second-best performer behind online clothing retailer ASOS. 

Over the past year, the firm has observed a sustained boost in revenue thanks to strong trading by its fresh food business in Central Europe and impressive topline growth at its three facilities in Australia.

Sales also benefited from its Auckland food park having its first full year of trading, as well as the acquisition of smoked salmon producer Foppen.

Funded primarily via a £75million share raising, the Dutch group’s takeover helped Hilton enter the American market, where Foppen’s products are sold in Costco retail stores.

Just before completing the purchase, the company also bought Fairfax Meadow, a major supplier to the hospitality and travel sector, and agreed to buy the remaining stake it did not own in plant-based food manufacturer Dalco. 

Aside from acquisitions, it has launched new tie-ups with Australian automation business Agito and cultured meat technology venture Cellular Agriculture.

In addition, it announced a partnership three weeks ago with Singapore-based Country Foods in order to expand its operations into South East Asia.

Hilton Foods said it continued ‘to explore wider geographic expansion and opportunities for growth in our existing markets as we deliver on our strategy as the protein partner of choice.’

Despite the broader economic uncertainty, the business has expressed an optimistic outlook for the upcoming year, which it partially credits to its recent trading results, diversity of products and quality of its facilities. 

Founded in 1994 as a beef and lamb central meat packing facility, the company supplies food across 19 markets, predominantly in Europe, and its most well-known clients include Waitrose and Woolworths, Australia’s biggest supermarket chain.

This post first appeared on Dailymail.co.uk