Hilton Food backs profit guide despite weakness in seafood business

(Alliance News) - Hilton Food Group PLC on Tuesday maintained its profit guidance but warned that conditions remain challenging for its seafood, vegetarian and vegan businesses.

Ahead of Tuesday's annual general meeting, the Huntingdon, England-based food packaging company said it remains on track to report adjusted pretax profit between GBP60 million and GBP65 million in 2026. It reported adjusted pretax profit from continuing operations of GBP69.0 million in 2025.

The firm said trading performance in its core meat and fresh prepared food businesses has been "good".

"The East region continues to benefit from positive momentum in Australia and New Zealand, and further growth in fresh prepared foods in Central Europe," Hilton Food noted.

The West region has seen "slightly higher" volumes in the year so far, with "strong" trading in the run-up to Easter.

As expected, Hilton Food warned that conditions remain challenging for its seafood, vegetarian and vegan businesses.

"However, we are making progress in improving performance to increase strategic optionality. Cost reduction plans are being implemented in Seachill against a backdrop of continuing volume challenges," Hilton Food said.

The Foppen brand is exporting to the US by sea rather than air, as it waits for feedback from the Food & Drug Administration to remove export restrictions on its facility in Greece.

The firm said it remains on track for full launch its Canada project in 2027, with bacon now planned to be added to its scope.

It continues to expect its facility in Saudi Arabia to start operations in the second half of 2026, while it is also finalising plans to increase capacity in Poland.

As previously indicated, Hilton Food expects capital expenditure to be around GBP100 million in 2026, and for net debt to increase as a result.

Hilton Food said: "Although we remain cautious on the broader inflationary environment and mindful of the potential impacts of the situation in the Middle East, our performance so far in this year underpins our confidence in both the short- and longer-term prospects for the group."

Shares in Hilton Food were up 4.2% at 562.50 pence on Tuesday morning in London.

By Michael Hennessey, Alliance News reporter

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