Hilton Food reiterates outlook after solid start to year

(Sharecast News) - Hilton Food Group said in an update on Tuesday that trading in its core meat and fresh prepared food businesses had been good so far in 2026, leaving its full-year outlook unchanged.

The FTSE 250 food packing and manufacturing group said performance in the period from 29 December to the date of its annual general meeting had supported guidance for adjusted profit before tax of £60m to £65m for 2026.

Hilton said its East region continued to benefit from positive momentum in Australia and New Zealand, as well as further growth in fresh prepared foods in Central Europe.

In the West region, overall volumes were slightly ahead of the same period last year, helped by strong trading in the run-up to Easter.

Conditions remained challenging in seafood, vegetarian and vegan, as expected.

Hilton said it was making progress on improving performance and increasing strategic optionality, with cost reduction plans being implemented at Seachill against a backdrop of continued volume challenges.

Foppen was now exporting to the United States by sea rather than air, while Hilton awaits feedback from the US Food and Drug Administration after submitting a request to remove restrictions on exports from its facility in Greece.

The group said it was also looking for ways to increase volumes and use spare capacity at its Dalco facility.

Hilton said it had recently extended its commercial partnership with Tesco in the UK.

Its Canadian project remains on track for full launch in 2027, with bacon now planned to be added to the scope, while its Saudi Arabian facility is still expected to start operations in the second half of 2026.

The group was also finalising plans to increase capacity in Poland to support future growth in fresh prepared foods.

Hilton said capital expenditure was expected to be around £100m in 2026, with net debt set to increase over the year as a result.

"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," the company said.

Hilton said it planned to publish interim results for the 26 weeks ending 28 June on 3 September.

At 1041 BST, shares in Hilton Food Group were up 4.07% at 562p.

Reporting by Josh White for Sharecast.com.

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