FDBusiness.com

Reflecting higher volumes and the new trading business, Hilton Food Group, the UK-based international meat packing specialist, has reported a 12.8% increase in revenue to £1.234 billion – up by 7.2% on a like-for-like 52 week constant currency basis – for the year ended 1 January 2017. . Underlying volume increases were seen in the UK, Ireland, Holland and Australia with lower volumes in Denmark and Central Europe. Operating profit, at £34.3 million was 18.4% above the previous year’s level and 11.7% higher on a like-for-like 52 week constant currency basis. The operating profit margin in 2016 improved to 2.8% (2015: 2.6%), primarily reflecting higher Australia volumes and the operating profit per kilogram of packed meat sold was 12.5p (2015: 11.3p).

During the year, Hilton Food Group concluded an agreement with Woolworths to build and operate a new production facility in Queensland, Australia due to open in 2020. The meat group also achieved a successful range expansion into fresh pizza production in Sweden and Central Europe, and established a UK meat trading business. Since the end of the year, Hilton Food Group has signed a joint venture agreement with Sonae Modelo Continente, Portugal’s leading food retailer following on from co-operation agreement.

Robert Watson OBE, chief executive of Hilton Food Group, comments: “2016 was a very strong year as Hilton continued to make good progress with volume and profit growth, range extension and the launch of a meat trading business despite competitive market conditions. The conclusion of a joint venture in Portugal and the development of a further factory in Australia demonstrates our geographical and operational growth and we continue to explore further expansion opportunities.”