Hilton Food Group has beaten profit expectations, despite a disappointment in its Foppen seafood business. The company’s turnaround has gathered steam, with strong volume growth and the sale of Dalco helping to improve profits.
Regulatory issues have held up sales of smoked salmon from Foppen to the US for over a year, costing the business £21m in exceptional items in the first half alone.
A good overall trading performance in meat and fresh prepared food helped Hilton to post a smaller-than-expected drop in profits in the first half. The exclusion of Dalco as assets held for sale allowed Hilton to upgrade its full-year profit guidance by £6m.
Revenues from continuing operations climbed 11.5% to £2.3bn on a constant currency basis in the 26 weeks to 28 June 2026, as volume growth was supplemented by significant inflation-linked price increases.
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Adjusted operating profit fell 6.6% CC to £45.8m, largely reflecting challenges in Hilton’s Foppen seafood business, though the fall was not as bad as expected.
The troubles at Foppen have been a significant challenge for Hilton, with shipments shut out of the US for over a year due to regulatory challenges. Hilton said it was assessing all options for the future of the Foppen business.
CEO Mark Allen said the half-year had been encouraging. Having set out the conclusions of their strategic review earlier in the year, they continue to innovate and deliver for their customers.
Core meat and fresh prepared food delivered a profit in the period, with around 5% growth in adjusted profit before tax. The agreed sale of Dalco is a step towards simplifying Hilton’s portfolio.
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Additional revenue streams will soon be added to the business with the launches of its purpose-built facility for its Canadian Walmart partnership in January 2027 and its joint venture with the Saudi National Agriculture Development Company in Q4 2026.
House broker Shore Capital analyst Clive Black called the first half results a solid update. Hilton has stabilised after a challenging 2025, focusing attention on the execution of the overall plan, noting good progress in the meat and prepared food core.
Whilst fish needs to be managed, we do not expect Foppen to be a long-term drag.
The company is driving opportunities and maximising performance from its core operations. With the positive impact of its improvement plans at Seachill in the UK beginning to show.