International meat packer reveals profit increase
Releasing its financial results for the 52 weeks ending 31 December 2014, Hilton revealed that pre-tax profits had increased 1.1% on last year, to £25.2 million.
Volume sales were also up 3.5% to 231,504 tonnes. However, revenue was down 2.3% compared with 2013.
During 2014, Hilton invested £43.3m in its facilities in the UK, Sweden and Australia, compared with £18.4m in 2013, which chief executive Robert Watson said "was essential to facilitate the group’s planned future growth".
The company said its joint venture with Australian retailer Woolworths was "performing well". A new dedicated site for Woolworths in Melbourne will be completed in the third quarter of 2015, Hilton reported.
Meanwhile, the conversion of the Bunbury site in Western Australia, to substantially increase retail packed meat production, was successfully completed in the first half of 2014.
Fiona Cincotta, a senior market analyst at www.finspreads.com, said: "Hilton Food Group has reported a 2.3% fall in sales to £1.1bn, due to lower meat prices and unfavourable currency exchange rates, which are affecting company results across the board this earning season. Despite the dip in revenues the group also announced an increase in pre-tax profit of 1.3% to the tune of £25.2m," she said.
Commenting on the more positive results, Cincotta added: "The results are solid, but nothing for the market to get over-excited about. However, they were in line with expectations and are a strong base with which the group can spring forward in 2015.
"Going forward, the potential for the group is strong, with benefits yet to come from investments in the UK and Swedish factories, the possibility of entering new markets and improving fortunes at Tesco, the group’s key client."
Watson added: "We will continue to seek out available opportunities to progressively and profitably expand the scale and scope of our operations, employing a business model that remains resilient, relevant and internationally transferable."
