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(Alliance News) - Hilton Food Group PLC on Wednesday said an improved showing at its seafood business underpinned a sharp increase in annual profit.
Shares in Hilton Food Group rose 2.2% to 873.00 pence on Wednesday morning.
In 2023, the Huntingdon-headquartered food packaging company reported pretax profit rose 64% to GBP48.6 million from GBP29.6 million the year prior. Earnings per share more than doubled to 40.6 pence from 19.8p last year.
Revenue edged up 3.7% to GBP3.99 billion from GBP3.85 billion.
Hilton Food said the recovery in its seafood arm was delivered ahead of plan, returning to full year operating profit, supporting the uplift in group pretax profit.
The company said the core meat category continued to perform well with strong meat volume growth in Asia-Pacific plus a resilient out turn in Europe and UK, achieved against an inflationary backdrop.
While the Seafood business recovered strongly, market challenges in the vegetarian and vegan business remain, the firm commented.
"We have taken steps to consolidate this business into a single operating facility and we are confident in the opportunities that the category will present for Hilton Foods over the coming years," it said.
Hilton Food reported growth of its international customer base via a new deal with Walmart Inc in Canada, backed by organic growth with existing customers.
Trading in 2024 to date has started in line with expectations, although markets remain challenging, the firm commented.
"Growth prospects are underpinned by the strength of our core meat business, the continued recovery in seafood and in the medium term our recent acquisitions and the developing relationship with Walmart in Canada," Hilton Food said in a statement.
"The group's financial position remains strong, with improving leverage and headroom at comfortable levels, and we continue to explore new growth opportunities with existing partners, wider geographic expansion and complementary M&A."
The dividend was increased by 7.7% to 32.0 pence from 29.7p. It proposed a final dividend of 23.0 pence per share, up 1.8% from 22.6p.
By Jeremy Cutler, Alliance News reporter
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