Hilton Food Group grows in Western Europe

Volumes rose 4.25%, compared to the same period last year, reaching 121,832 tonnes. Operating profit increased 1.1% to £13.6m, however turnover dipped 0.3% to £592.3m.

The firm said that despite "continuing weakness in consumer spending"​ volumes held up in the UK due to the start of a contract with major multiple retailer Tesco. Some recently introduced products in The Netherlands were also performing well, it said.

Currency fluctuations and lower raw material prices were blamed for the slow growth in turnover, while growth in underlying profitability was held back for the same reasons in addition to the start-up costs incurred in Australia and the UK.

Hilton Food Group has now converted the Woolworths’ Bunbury facility in Western Australia, in order to expand its retail packing operations, and the construction of a new purpose-built retail packing facility for Woolworths in Victoria is currently under way.

It said the broad spread of its operations over Europe and the Asia-Pacific region represented a clear strength in terms of reducing its dependence on the state of one national economy.

In Western Europe, operating profit grew from £14.6m last year, to £14.8m, while turnover rose from £543.5m to £545.8m. Central Europe, however, saw operating profit drop from £1.3m to £1.2m, and turnover fall from £50.3m in 2013, to £46.5m

Robert Watson, chief executive of Hilton Food Group, said: "There is good underlying momentum in the business. During the year we are progressing a major expansion of our UK facilities, the re-equipment of our facilities in Sweden and the development of a new facility in Victoria, Australia."​

The group said it had been able to carry out major reinvestment programmes in the UK and Sweden with only a limited increase in net debt, due to strong cash generation.

"Our aim is to extend the geographic reach of the Hilton model and we continue to look for new opportunities,"​ added Watson.