Hilton Food Group’s profits rise 25%

Hilton also reported volume growth despite “challenging” ​retail grocery markets.

The 4.5% rise in volume from 127,913t to 133,706t was attributed to the firm’s investment in supplying meat to UK retailer Tesco, which encouraged growth in Hilton’s Irish business.

Turnover for the company rose by 9.1% to £631.9M from £579.2M.

A weakened pound had also benefitted the company and increased turnover for the company’s western Europe operations by 8.6%.

Strengthened against the pound​

European currencies strengthened against the pound, including the euro, Danish krone and the Swedish krona.

The launch of Hilton’s new meat trading business this year, Hilton Food Solutions, had also helped boost profits for the company.

Hilton Food Solutions supplies manufacturers and the foodservice outlets and was designed to complement the firm’s established business of supplying retailers.

Chief executive Robert Watson said: “Despite challenging market conditions we are pleased to report good volume and profit growth with profitability benefiting from favourable exchange rate movements.​

‘Innovation and product development’​

“We continue to grow our existing business through innovation and product development including the establishment of a meat trading business in the UK to utilise our industry experience and procurement strength.​

“We will continue with our strategy of furthering the geographic reach of the Hilton model, exploring a range of new expansion opportunities.”​

Hilton also outlined the risks facing the business. These included the group’s dependency on a small number of customers that exercise significant buying power and influence.

The UK’s decision to leave the EU was not considered a threat to the company. It would only serve to affect product flows between EU countries and those outside the EU.

Meanwhile, Kingsmill owner Associated British Foods’s announced its operating profits would be ahead of last year, according to its trading update released this week.