Turnover climbed 10.3% to reach £496.2M, compared with £449.9M in the same period of last year. Growth drivers were volume growth of 2.5%, about 6% price increases (reflecting higher primal prices) and 2% favourable currency factors.
Operating profit reached £13.2M, up 9% on the same period last year.
Graham Jones, Panmure Gordon executive director of equity research, said: “Hilton has delivered another period of good growth, slightly ahead of our expectations, despite weak consumer spending in many markets and higher meat prices holding back volume growth. 74% of sales are now outside of the UK, and this should increase further as the new factory in Denmark is building volumes rapidly.
Attractive
“We think this looks very attractive for a company with the track record, growth opportunities and balance sheet strength of Hilton.”
Sales in Western Europe rose by 10.8% to reach £452.2M with earnings before interest, taxes, depreciation, and amortisation (EBITA) rising by 11.5% to £12.1M.
Volume growth of 2.2%, in the first three months of the review period, benefited from trading at the firm’s new £19.3M facility to supply the retailer Coop in Denmark, which opened on March 30. Currency and price also made positive contributions.
Analysts Darren Shirley and Clive Black of Shore Capital commented: “Post today’s results, and the beating of our expectations, we believe there is increasing potential for modest upgrades (1-2%) to FY forecast if the current momentum is maintained.
“However, with the consumer and economic activity fragile across the UK and Europe, we believe it is prudent we keep our forecasts unchanged for the time being at CPTP of £24.4M, EPS of 24.8p.”
Difficult times
Robert Watson, Hilton’s chief executive, said: “In these difficult times, Hilton continued to benefit from its geographically diversified business model. Despite the economic environment across Europe and rising raw material meat prices, trading over the first 28 weeks of 2011 has been strong.
“We have achieved further growth in turnover and profits, while continuing to actively support our customers’ growth in very competitive markets.”
Based in Huntingdon, Hilton is Europe’s largest red meat packer by turnover and supplies major retailers such as Tesco.
The firm’s lines include roasting joints, steaks, chops, mince and value-added products such as barbecue ranges, marinated meats and meat cuts with serving sauces.