Resilient Performance by Hilton Food Group
Hilton Food Group, Europe’s leading specialist retail meat packing business supplying customers in thirteen countries, increased volumes by 4.8% and revenue by 5.1% to Eur1.03 billion for the 52 weeks ended 30 December 2012, reflecting growth in both its new business in Denmark and further expansion in Central Europe. Against the backdrop of a very challenging environment for the consumer, operating profit edged up 0.3% to £26.0 million.
Operating profit was flat at £23.7 million on turnover up 5.3% to £935.4 million at the group’s operations in Western Europe, which cover the UK, Ireland, Holland, Sweden and Denmark.
Turnover rose by 3.2% to £95.6 million but operating profit at £2.3 million was flat in Central Europe, where the group’s meat packing business, based at Tychy in Poland, supplies three customer groups from Hungaryto the Baltics.
Capital expenditure of £12.4 million included investment at all of the group’s sites, to drive efficiency gains, extend product ranges, take advantage of advances in packing technology and to facilitate continued volume growth. Despite maintaining this high level of investment, Hilton reduced its net borrowings by 72% to £5.2 million, and with a strong balance sheet, with gearing at 0.1 times EBITDA, the specialist meat packer is well positioned to deliver sustainable growth.
In January 2013, Hilton announced its first expansion beyond Europe into the faster growing Asia Pacific region, following the formation of a joint venture with Woolworths in Australia.
Robert Watson OBE, chief executive of Hilton Food Group, comments: “I am pleased to report that in 2012 Hilton has delivered another resilient performance. The group has maintained a high level of investment in its meat packing facilities across Europe while exploring opportunities to progressively and profitably expand its business. Our joint venture with Woolworths in Australia represents the group’s first expansion beyond its European heartland and illustrates well the transferability of its business model.”
