Hilton Foods Regulatory News (HFG)

13th January 2022

HILTON FOOD GROUP plc

TRADING UPDATE FOR THE 52 WEEKS ENDED 2nd JANUARY 2022

· Full year trading in line with Board's expectations

· Dutch competition authority clearance for acquisition of Foppen

· Joint Venture agreed with Agito Group Pty Ltd further enhancing our technology expertise

Hilton Food Group plc ("Hilton" or the "Group"), the leading international multi-protein food business, today provides a trading update for the 52 weeks ended 2nd January 2022.

We are pleased to report the Group has performed in line with the Board's expectations, with year-on-year sales growth driven predominantly by organic expansion. Over the two year period we have seen strong, sustained growth, as we deliver towards our goal of becoming the global protein partner of choice.

In Australia, where we have seen strong double-digit growth, we are successfully operating as a unified business covering the sites of Bunbury (WA), Truganina (VIC) and Heathwood (QLD). The New Zealand facility, being our first multi-protein food park, opened in early July and volume has continued to grow during the course of the year.

In Europe, we have continued to make good progress across the markets in which we operate, and we have seen strong growth on a two year basis. As expected against strong prior year comparatives, regional revenue is broadly flat for the year reflecting the increase in consumers eating out following the re-opening of food service in the second half. Within the UK we have seen strong growth in the slow cooked business, while in Central Europe, we have delivered continued volume growth in fresh food across our customers.

We have continued to diversify the business across proteins and routes to market. As noted in the Q3 update, in Denmark we are now packing chicken, vegetable protein as well as fish products. During the year, we have acquired the remaining 50% of vegetarian and vegan food producer Dalco and the food service protein provider Fairfax Meadow. In December, we annouced the acquisition of the speciality smoked salmon producer, Foppen. We have now received Dutch competition authority clearance for acquiring Foppen, and are currently working to obtain works council approval. In all cases we are developing plans to continue to grow these businesses and integrate them into the Group.

In addition, we have acquired a 50% interest in Agito Group Pty Ltd ("Agito"), a provider of automation and software controls which supported the Group in the establishment of our highly automated facilities in Australia and New Zealand. Our intention is to support the global expansion of the Agito business, which will add to our existing technology offering of Foods Connected and our continued application of robotics and automation to our facilities in support of the supply chains of our customers. Further details regarding Agito are in the notes section of this update.

We continue to deliver against our wider environmental and sustainability targets across the three key categories of product, people and planet. We received approval during the year for our Science Based Targets and continue to demonstrate leadership in sustainable packaging, exceeding our target, with 70% average recycled content in packaging achieved.

Hilton's trading outlook remains positive, with growth prospects underpinned by the expansion plans previously announced, the four recent acquisitions of Dalco, Fairfax Meadow, Foppen and Agito, as well as further opportunities arising across our markets by the development of our cross category business and the application of Hilton's supply chain management expertise. Funding is in place to cover the announced expansions and the Group's financial position remains strong. We will continue to explore opportunities to grow the business in both domestic and overseas markets.

The Group will publish its preliminary results on 6th April 2022.

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Notes

About Hilton

Hilton Food Group plc is a leading international multi-protein producer, serving customers and retail partners across the world with high quality meat, fish, vegan and vegetarian foods and meals. We are a business of over 5,000 employees, operating from 19 technologically advanced food processing, packing and logistics facilities across 16 markets in Europe and Australasia. For almost thirty years, our business has been built on dedicated partnerships with our customers and suppliers, many forged over several decades, and together we target long-term, sustainable growth and shared value. We supply our customers with high quality, traceable, and assured food products, with high standards of technical excellence and expertise

Hilton enters into joint venture with automation solutions provider, Agito Group Pty Ltd

Hilton is pleased to announce that on 6th January 2022 it entered into a joint venture with the founding shareholder of Agito Group Pty Ltd. Agito is a long established and profitable business, delivering projects in the Australian and New Zealand market since 1984, currently with offices and manufacturing facilities in both Western Australia and New South Wales. The joint venture will enhance Hilton's automation and technology solutions offering to retailers and logistic providers - an area of focus as they seek to improve supply chain management and increase efficiency, transparency and control. The joint venture will also accelerate Agito's global expansion plans.