The performance of the specialist retail meat packing business over this period was “in line with the board’s expectations”, the company said. The news was welcomed by Shore Capital’s Darren Shirley and Clive Black, who retained their current pre-tax profit forecast for the group for the full year.
Hilton supported its update by reporting continued growth of the business, through additional volumes and close cooperation with its retail customers, which include Tesco in the UK and Ahold and Albert Heijn on the continent.
Continued growth
The group will publish its interim results for the 28 weeks ended July 17 2016 on September 13.
Hilton announced in its update that it had also benefited from the strength of the currencies in which it operates relative to sterling.
In western Europe, it reported good progress in a number of markets. In the UK, volumes were higher than in 2015, when they were still building up during the bedding-in phase following the expansion of its production facility.
In the Dutch market, it continued with volume growth. It was also encouraged by the performance of its business in Ireland, where it saw growth in the first half of 2016.
The availability and price of Swedish pork
In Sweden, volumes were flat and turnover up, reflecting the availability and price of Swedish pork. It also agreed with Swedish retailer ICA to supply fresh pizzas to its stores, which is expected to commence towards the end of this year.
In Denmark, conditions remained challenging, while in central Europe where Hilton supplies customers in seven countries its has been in svolume growth.
In Australia, the volume build up from a joint venture plant in Victoria has continued in line with its plans.
Hilton recently signed a cooperation agreement with Sonae in Portugal. This deal is expected to lead to a joint venture agreement at some point, it said.