(Alliance News) - Hilton Food Group PLC on Wednesday reported robust revenue growth in 2021 on strong volume growth and lifted its dividend, despite a fall annual profit.
The Cambridgeshire, England-based food packaging business recorded a pretax profit of GBP47.4 million in 2021, down 12% versus GBP54.0 million in 2020, due to exceptional items of GBP8.2 million.
Annual revenue grew 22% to GBP3.30 billion from GBP2.77 billion.
Hilton credited this to strong volume growth across all protein categories, as well as its expansion into new markets.
In 2021, the food company transformed the business to expand into new protein products and categories, like seafood, vegan and vegetarian proteins.
"Consumer buying patterns are evolving with more seafood and vegetarian proteins being eaten. Through Hilton's diversification into these proteins we are well placed to grow our business," the company stated.
Hilton proposed a final dividend of 21.5 pence per share, taking its total dividend to 29.7p. This reflects an increase of 14% from 26.0p, year-on-year.
The company said it is confident of making further progress in 2022, despite a challenging environment with global uncertainties impacting supply chains and inflation.
It noted that it continues to explore opportunities with existing and new customers for further expansion in domestic and overseas markets.
Separately, Hilton proposed the appointment of Matt Osborne as chief financial officer. He is currently working as financial controller at Hilton and worked as group financial controller at Greene King PLC before joining the company. Osbourne will assume the role following the Hilton's annual general meeting and succeed Nigel Majewski.
"This has been a year of delivery and diversification. We have delivered another strong financial performance with volumes and revenue both growing, maintaining a trend of continuous volume growth every year since Hilton's flotation in 2007," Chief Executive Philip Heffer said.
"We grew adjusted operating profit by 13%, in line with the 11% compound annual growth rate we have delivered in our fourteen years as a listed business. These results reflect an outstanding team effort as well as the power of our business model, which is rooted in the partnerships we have built with customers across Europe and Asia Pacific," he continued.
Hilton Food Group shares were trading 1.3% lower at 1,206.00p each in London on Wednesdat morning.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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Hilton Foods (HFG)