REG - Hilton Food Grp Plc - Interim Results
Wed 07:00
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RNS Number : 7378X Hilton Food Group PLC 03 September 2025
3 September 2025
Hilton Food Group plc
Robust performance and further strategic progress despite challenging market
Hilton Foods today announces its interim results for the 26 weeks to 29 June
2025.
Business highlights
· Retail meat and convenience has delivered above-market volume growth
of 3.1% with contributions from all regions, supported by strong retail
partnerships, efficient operations and a well-aligned product offer. This is
set against a highly inflationary pricing environment.
· In the UK, seafood performance has been impacted by softer demand for
white fish, driven by significant raw material inflation.
· In Europe, our Foppen smoked salmon business was impacted by
regulatory restrictions on shipments to the US resulting in operational
disruptions. We have implemented actions to address the issue.
· We have welcomed a new strategic partner to Foods Connected in July,
strengthening the platform and enabling us to jointly accelerate progress on
its growth opportunities.
· New strategic geographical expansion on time with Saudi Arabia JV
launching H2 2026 in partnership with NADEC, and Hilton Foods Canada launching
early 2027 with Walmart.
Financial overview
Variances below are presented on a reported basis and on a comparable constant
currency basis(2).
· Volume increase of 2.5% with revenue up by 10.4% on a constant currency
basis, driven by significant raw material inflation across all markets. On a
statutory basis, revenue up 7.6% to £2.09bn
· Adjusted profit before tax of £33.6m increased by 3.0% on a constant
currency basis and up 0.3% on a reported basis. Statutory profit before tax
down 4.7%
· Adjusted Free cash outflow(2) of £30.8m (2024: £30.0m inflow)
· Net bank debt(2) of £202.4m (FY2024: £131.4m) as a result of
increased tactical inventory holding and capital spend in Canada; period end
net bank debt as a proportion of adjusted EBITDA(2) 1.3x (2024 year-end:
0.9x).
· Interim dividend of 10.1p (2024: 9.6p) in line with the policy.
2025 2024 Change
26 weeks to 26 weeks to Reported Constant currency
29 June 2025 30 June 2024
Volume (tonnes) (1) 267,405 260,907 2.5% 2.5%
Revenue £2,092.4m £1,943.8m 7.6% 10.4%
Adjusted operating profit (2) £46.6m £46.8m -0.4% 1.9%
Adjusted profit before tax (2) £33.6m £33.5m 0.3% 3.0%
Adjusted basic earnings per share (2) 26.5p 25.8p 2.7% 5.0%
Statutory operating profit £41.3m £43.6m -5.3%
Statutory profit before tax £24.3m £25.5m -4.7%
Statutory basic earnings per share 18.6p 18.8p -1.1%
Adjusted Free Cash (Outflow)/inflow (2) (£30.8m) £30.0m
Net bank debt (2) £202.4m £137.0m
Interim dividend 10.1p 9.6p
Outlook
We expect our retail meat businesses to continue to perform well for the
remainder of 2025 and we will continue to address the impact of inflationary
trends in white fish and the operational disruption in Foppen. As a result we
expect to deliver full-year results within the range of expectations(3).
Looking further ahead, Hilton Foods' long-term customer partnerships, presence
in large growing international markets, highly efficient facilities and
processing expertise provide a strong platform for sustainable growth.
Steve Murrells CBE Hilton Foods Chief Executive Officer, said:
"The first half of 2025 has been shaped by a strong performance in our retail
meat and convenience businesses. We remain committed on delivering our
full-year results within the range of expectations. Whilst we have faced
market-driven pressures and some specific operational challenges in seafood,
we have responded with agility and continue to have a strong platform in place
for future growth. I want to thank all our dedicated teams for their continued
commitment.
"International growth with our NADEC partnership in Saudi Arabia and with
Walmart in Canada remains on schedule. Our innovative product ranges continue
to resonate with customers and seasonal preparations are well underway for the
upcoming Christmas trading period.
"We have a simple objective: building upon the core strengths that have long
defined the business. Our global capabilities and established customer
relationships continue to provide a strong foundation for growth and
sustainable returns.
"At the same time we have commenced a project that focuses on sharpening our
future priorities. This includes optimising our organisation to support
expansion and create long-term sustainable value for all. Work on these plans
is progressing well, and we look forward to outlining them once complete."
Notes
1 Volume includes 50% share of the Portuguese joint venture activities
2 Hilton uses Alternative Performance Measures (APMs) to monitor the
underlying performance of the Group which are detailed in note 16 and the
Glossary. Management considers that APMs, in addition to statutory metrics,
provide useful information on business performance which enables management to
monitor and manage the business day-to-day
3 Company Compiled range of expectations £76.8m - £81m as of 2
September 2025
A presentation for analysts and investors will be held this morning at
8.15am, which will also be webcast. For details please contact
hiltonfood@headlandconsultancy.com (mailto:hiltonfood@headlandconsultancy.com)
https://brrmedia.news/HFG_HY25 (https://brrmedia.news/HFG_HY25)
Enquiries:
Hilton Food Group
Tel: +44 (0) 1480 387214
Steve Murrells CBE, Chief Executive Officer
Matt Osborne, Chief Financial Officer
Hannah Surtees, Director of Investor Relations and Communications
Headland Consultancy
Limited Tel: +44
(0) 20 3805 4822
Susanna
Voyle
Email: hiltonfood@headlandconsultancy.com
Will Smith
Joanna
Clark
About Hilton Foods
Hilton Foods is a leading international multi-category food producer, serving
customers and retail partners across the world with high quality meat,
seafood, vegan and vegetarian foods and meals. We are a business of over 7,500
employees, operating from 24 technologically advanced food processing, packing
and logistics facilities that serve over 19 markets in Europe, Asia Pacific
and North America. For over thirty years, our business has been built on
long-term 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 manufactured in our well invested, highly automated facilities.
Cautionary statement
This interim management report contains forward-looking statements. Such
statements are based on current expectations and assumptions and are subject
to risk factors and uncertainties which we believe are reasonable.
Accordingly, Hilton's actual future results may differ materially from the
results expressed or implied in these forward-looking statements. We do not
undertake to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Alternative performance measures (APMs)
Hilton uses Alternative Performance Measures (APMs) to monitor the underlying
performance of the Group which are detailed in note 16. Management considers
that APMs, in addition to statutory metrics, provide useful information on
business performance which enables management to monitor and manage the
business day-to-day.
Review of operations
The Group is presenting its interim results for the 26 weeks to 29 June 2025,
together with comparative information for the 26 weeks to 30 June 2024. These
interim results are prepared in accordance with UK-adopted International
Accounting Standard 34 and the Disclosure Guidance and Transparency Rules
sourcebook of the UK Financial Conduct Authority.
Performance overview
Group volumes grew by 2.5% with revenue up 7.6% to £2.09bn, up 10.4% on a
constant currency basis.
Retail meat continued to outperform total market volume trends across all
regions, with overall volumes up 1.8%, reflecting our highly relevant product
range in a significant inflationary market environment.
The performance of our retail meat business continues to be supported by our
broad and diversified product ranges, which cater to a wide spectrum of
customer preferences across global markets. Our agility in responding to
emerging consumer trends through timely new product launches enables us to
capture both premium in-home dining occasions and provide strong value
offerings for everyday consumption.
Seafood delivered softer results, with reduced availability of white fish
leading to raw material inflation and therefore softer UK demand. In Europe,
Foppen has been impacted by regulatory restrictions on shipments of smoked
salmon products into the US from our Greek facility. To ensure continued
availability and unbroken supply to customers, we have temporarily
transitioned production to our facility in the Netherlands. We are working
closely with the FDA and are taking the necessary corrective actions to resume
production in Greece. The steps we have taken, whilst incurring
non-underlying costs, are helping protect availability and customer service
levels.
Convenience food categories performed well, fuelled by rising consumer demand
for ready-to-eat and prepared meal solutions across our European markets.
Region performance summary
Revenue Change Adjusted operating profit Change
2025 2024 Reported Constant currency 2025 2024 Reported Constant currency
UK & Ireland £797.3m £709.6m 12.4% 12.5% £22.4m £21.1m 6.2% 6.2%
Europe £544.9m £519.7m 4.9% 5.3% £17.1m £19.1m -10.5% -10.4%
APAC £750.2m £714.5m 5.0% 11.9% £15.2m £14.5m 4.8% 11.7%
UK and Ireland
This operating segment covers the Hilton Foods businesses and joint ventures
across the UK and Ireland, including our meat processing facilities in
Huntingdon, our seafood facilities in Grimsby, our food service business
Fairfax Meadow and our ROI meat facility in Drogheda.
Total regional volumes were 0.2% higher, with revenue up 12.4% on a reported
basis, driven by inflation in core beef and white fish. Adjusted operating
margins of 2.8% (2024: 3.0%) reflected volume pressures in seafood from
reduced demand. Softer UK Seafood demand has been driven by quota cuts leading
to significant raw material inflation. We are responding with product
reformulation and the introduction of alternative species alongside tactical
inventory purchases to protect availability for the remainder of the year.
Retail meat volumes grew 1.7%, outperforming the total market decline of 2.7%,
supported by strategic trade planning with customer partners, new product
launches and premiumisation. We increased stock levels to manage anticipated
supply constraints in the second half, resulting in higher working capital.
Europe
This operating segment covers the Group's meat, easier meals, seafood, vegan
and vegetarian businesses and joint ventures in Holland, Sweden, Denmark,
Central Europe, Greece and Portugal.
Volumes saw growth of 3.1%, with revenue up 5.3% on a constant currency basis.
Retail meat and easier meals volumes grew 3.3%, outperforming total market
performance of 0.6%, supported by strategic trade planning with customer
partners, new product launches and premiumisation. Adjusted operating margins
were 3.1% (2024: 3.7%), with operating profit down 10.5% impacted by volume
reductions in Foppen as a result of operational challenges affecting US smoked
salmon exports. To maintain supply to strategic US customers, production has
been temporarily shifted from Greece to the Netherlands, incurring
non-underlying operating and logistics costs. We are working closely with the
FDA to resolve the current disruption, although we anticipate continued impact
on Foppen through H2 2025.
APAC
The Group operates three Australian processing facilities (Bunbury in Western
Australia, Melbourne and Brisbane) alongside our multi-protein food park
facility in Auckland, New Zealand.
Volumes rose 3.6% benefitting from product range expansions that supported new
multi-buy and promotional activity in core categories, while revenue increased
by 11.9% on a constant currency basis driven by beef price inflation. Adjusted
operating margins were stable at 2.0% (2024: 2.0%) with operating profit up
4.8%.
Strategic progress
Leading food manufacturer with highly relevant products
We continue to maintain a sharp focus on both new product development and the
targeted reformulation of existing lines to address the impact of protein
inflation. In the first period this has included accelerating the roll-out of
mixed meat protein ranges across mince and burger products in multiple
geographies where we operate and reformulating our fishcakes with
alternatively sourced white fish, launching hake in tactical brands within the
white fish category.
Alongside these initiatives, all businesses remain attuned to broader market
dynamics and shifting consumer preferences, with targeted actions across the
value spectrum. We continue to focus on premiumisation of key ranges such as
beef steaks, expanding convenience-led added-value solutions, and delivering
innovation in everyday product segments that enable effective promotions,
while working closely to support customers to deliver more affordable consumer
options.
Preparations for our seasonal ranges are progressing well, positioning the
business to deliver another strong Christmas trading performance.
Growing across international markets with significant expansion potential
We continue to make progress on range development and construction of our
joint venture facility with NADEC in Saudi Arabia and in developing our
partnership with Walmart in Canada, with both running on time to launch H2
2026 and early 2027, respectively.
Highlights this period included the ceremonial ground blessing in Canada with
Walmart and local government officials, continued progress in range
development including core product evaluations and planned upcoming automation
installation on schedule to commence in Q4 later this year. H1 strategic
capital spend was £15.1m and total 2025 capital spend on Hilton Foods Canada
is forecast to be c. £40.0m.
While changes in economic conditions have led to higher-than-anticipated
build-phase inflation for our Canada project, requiring additional capital
investment, the project is forecast to continue to outperform our return
thresholds and represents a compelling long-term growth opportunity.
Although organic growth and geographical expansion remain our primary growth
levers, we will maintain a disciplined approach to evaluating M&A
opportunities that arise and offer strong long-term returns and clear
synergies.
Future-ready: Consumer-driven supply chain innovation and digital
transformation
We continue to review all aspects of our business focussing on strengthening
long-term shareholder returns and further enhancing our competitive advantage.
We will continue to leverage next-generation technology to create a more
scalable business for the next phase of growth.
As part of this, we are sharpening our strategic focus prioritising the
markets, customers, categories and capabilities that will deliver sustainable
long-term growth, while actively pursuing opportunities to accelerate progress
in targeted areas. Our new strategic partnership with Apax in Foods Connected,
announced in July is an early example of this approach in action.
The Sustainable Protein Plan
Sustainability is embedded into every aspect of our operations, with a strong
culture of continuous improvement and innovation.
In Australia, our Medium Mince Tray Optimisation initiative demonstrates this
approach in action, delivering reduced plastic usage, reducing shipping
containers and truck movements, freeing warehouse capacity, increasing
production efficiency, and enhancing on-shelf availability. These changes not
only reduce costs and emissions but also strengthen our customer partnerships
and support our commitment to delivering quality products more sustainably.
Earlier this year we published our second standalone sustainability report
available via www.hiltonfoods.com/sustainability
Investments in our facilities
Hilton continues to invest in all its facilities maintaining state of the art
levels required to service our customers' growth, extend the range of products
supplied to those customers and deliver both first class service levels and
further increases in production efficiency.
Capital expenditure during the period was £41.2m (2024: £26.2m) which
includes £15.1m on our Canadian expansion and investment to increase capacity
in Ireland and Sweden.
Financial review
Adjusted results represent the IFRS results before deduction of acquisition
intangibles amortisation, other adjusting/exceptional items and IFRS 16 lease
adjustments. These adjustments are detailed in the Alternative performance
measures note 16.
Group results
Revenue increased by 7.6% to £2,092.4m (2024: £1,943.8m) up 10.4% on a
constant currency basis, reflecting higher volumes and higher raw material
prices. Further details of revenue and volume growth by segment are detailed
in the Review of operations above.
Adjusted operating profit for the first 26 weeks of 2025 was £46.6m, 0.4%
lower than in the previous year (2024: £46.8m) but up 1.9% on a constant
currency basis. The adjusted operating profit margin reduced to 2.2% (2024:
2.4%). IFRS operating profit for the first 26 weeks of 2025 was £41.3m (2024:
£43.6m) after charging non-underlying costs of £3.3m (2024: £0.3m).
Adjusted net finance costs excluding exceptional items and lease interest
decreased to £13.0m (2024: £13.3m) reflecting lower benchmark rates.
Interest cover as a proportion of adjusted EBITDA was 5.4 times (2024: 5.3
times). Similarly IFRS net finance costs decreased to £17.0m (2024: £18.1m).
The adjusted taxation charge for the period was £9.4m (2024: £9.3m)
representing an effective adjusted tax rate of 28.0%, compared with 27.9% last
year. The IFRS taxation charge was £7.2m (2024: £7.6m) representing a lower
effective tax rate of 29.6% (2024: 29.8%).
Net income represents profit for the year attributable to owners of the
parent. Adjusted net income of £23.6m was 1.7% higher than last year (2024:
£23.2m) primarily reflecting the higher operating profit and lower interest
costs. IFRS net income was £16.5m (2024: £16.9m) also reflecting increased
non-underlying costs.
Adjusted basic earnings per share of 26.5p in the first 26 weeks of 2025 were
2.7% above 25.8p last year reflecting the higher net income. IFRS basic
earnings per share was lower at 18.6p (2024: 18.8p).
Adjusted EBITDA of £70.7m for the period (2024: £70.6m) and EBITDA was
£80.4m (2024: £81.6m).
Balance sheet, cash flow and funding
In the first 26 weeks the Group incurred £30.8m of adjusted free cash outflow
(2024: £30.0m adjusted free cash inflow), as a result of increased inventory
and capital spend in Canada. Net cash used in operating activities was £0.6m
(2024: generated £64.2m).
Return on capital employed (ROCE), calculated as adjusted operating profit
divided by average of opening and closing capital employed representing total
equity adjusted for net bank debt, leases, derivatives and deferred tax, was
20.8% (21.7% for the 2024 financial year).
Cash balances at 29 June 2025 were £92.2m (2024: £95.3m) which, net of bank
borrowings of £294.6m (2024: £232.3m), resulted in net bank debt of £202.4m
(£137.0m at 30 June 2024 and £131.4m at 29 December 2024). This increase is
due to planned capital investment in Hilton Foods Canada's development, along
with our decision to increase stock to secure availability in anticipation of
seasonal trading demands in the second half of the year and early 2026. Net
bank debt at the end of the period as a proportion of annualised adjusted
EBITDA was 1.3 times (2024 year-end: 0.9 times). Net debt including lease
liabilities was £398.8m (£355.3m at 30 June 2024 and £337.4m at 29 December
2024).
At 29 June 2025 the Group had undrawn committed facilities under its
syndicated banking facilities of £47.0m (£108.0m at 29 December 2024). These
banking facilities are subject to covenants comprising net bank debt to EBITDA
and EBITDA interest cover. There was comfortable headroom under these
covenants at 29 June 2025.
Dividends
The Group has maintained a progressive dividend policy since flotation. Hilton
Foods remains financially strong with significant cash balances and undrawn
loan facilities, and we continue to operate well within our banking covenants.
The Board is satisfied that the Group has adequate headroom under its existing
facilities, that it is appropriate to continue to operate and to maintain this
dividend policy and has approved the payment of an interim dividend of 10.1p
per ordinary share (2024: 9.6p). The interim dividend, representing an
increase of 5.2% on the interim dividend declared in the prior year, amounting
to £9.1m will be paid on 28 November 2025 to shareholders on the register at
close of business on 31 October 2025.
Going concern
The Directors have performed a detailed assessment, including a review of the
Group's budget and forecasts for the 12 months from the date of this report
and its longer term plans, including consideration of the principal risks
faced by the Group. The resilience of the Group in the face of uncertain
challenges has then been assessed by applying significant downside
sensitivities to the Group's cash flow projections. Allowing for these
sensitivities and potential mitigating actions the Board is satisfied that the
Group is able to continue to operate well within its banking covenants and has
adequate headroom under its existing committed facilities which do not expire
until 2027. The Directors are satisfied that the Group has adequate resources
to continue to operate and meet its liabilities as they fall due for a period
of at least 12 months from the date of signing these interim financial
statements and therefore consider it appropriate to adopt the going concern
basis of accounting in preparing the consolidated interim financial
statements.
The Group's borrowings are detailed in note 10 to this report and the
principal banking facilities which support the Group's existing and contracted
new business, are committed. The Group is in full compliance with all its
banking covenants and based on forecasts and sensitised projections is
expected to remain in compliance. Future geographical expansion which is not
yet contracted, and which is not built into our internal budgets and
forecasts, may require additional or extended banking facilities and will
depend on our ability to negotiate appropriate additional or extended
facilities, as and when they are required.
The Group's internal budgets and forward forecasts, which incorporate all
reasonably foreseeable changes in trading performance, are regularly reviewed
by the Board and show that it will be able to operate within its current
banking facilities, taking into account available cash balances, for the
foreseeable future.
The principal risks and uncertainties facing the Group's businesses
Effective risk management at Hilton Foods is essential to the delivery of our
strategic objectives and aims to safeguard the interests of all our
stakeholders in an increasingly complex world. Our proactive approach to risk
management ensures the long-term sustainable growth of all aspects of our
business and is integrated into everything we do. The most significant
business risks that Hilton Foods faces, together with the measures we have
adopted to mitigate these risks, are outlined on pages 24 to 31 of the Hilton
Food Group plc 2024 Annual report. The principal risks and uncertainties
identified in that report were:
· The progress of the Hilton Foods business is affected by the
macroeconomic and geopolitical environment and levels of consumer spending;
· A significant breach of health and safety resulting in any harm
to people from negligence or management oversight. The complexity of this risk
increases as the Group expands both geographically and into new product
groups;
· Hilton Foods IT systems could be subject to cyber-attacks,
including ransomware and fraudulent external email activity. Such attacks are
rapidly increasing in frequency and sophistication, especially with the
progression of artificial intelligence;
· As Hilton Foods continues to grow there is a risk that the people
capabilities do not enable the business to grow and change as is necessary.
Recruiting, developing and engaging our workforce is critical to executing our
strategy and achieving business success. This risk increases as the Group
continues to expand through simultaneous growth projects with a need to ensure
we have the right culture, skills, capability and capacity in our workforce to
execute the strategy;
· Inability to maintain a flexible global supply base that
consistently meets our standards and those of our customers. Growing supply
chain volatility makes sourcing raw materials increasingly challenging.
· Contamination within the supply chain including outbreaks of
disease and feed contaminants affecting livestock and fish;
· Significant incidents such as fire, flood, pandemic, a breach of
site security or interruption of supply of key utilities could impact the
Group's business continuity;
· Hilton Foods growth potential may be affected by the success of
our customers and the growth of their packed foods sales;
· Hilton Foods strategy focuses on a small number of customers who
can exercise significant buying power and influence when it comes to
contractual renewal terms at 1 to 15-year intervals; and
· Hilton Foods business and supply chain is affected by climate
change risks comprising both physical and transition risks. Physical risks
include long-term rises in temperature and sea levels as well as changes to
the frequency and severity of extreme weather events. Transition risks include
policy changes, reputational impacts, and shifts in market preferences and
technology.
Current and emerging risks
Increasing Geopolitical Uncertainty
Geopolitical uncertainty and increasing levels of active hostilities in
multiple regions remain a significant concern and increases the risk impacting
our supply chains and operations. Disruption to energy markets, global
shipping and international trade particularly in relation to government tariff
strategies can also have far-reaching impacts. However, our continued review
of mitigations enables us to maintain resilience in our supply chains and
operations.
The macroeconomic environment
Cost-of-living pressures and economic uncertainty continue in much of the
world, with elevated inflation and interest rates not expected to reduce as
rapidly as previously expected. As these trends continue and as levels of
inflation and interest rates further ease we expect consumer spending and
eating habits to recover but remain cautious. We recognise the effect of
higher interest costs on all businesses and we continue to focus on ways of
reducing our exposure such as the use of cash pooling and exploring working
capital financing.
Our continued focus on cost control, innovation and factory efficiency, and
the implementation of automation and robotics is enabling us to manage the
inflationary pressures the industry is currently facing. Through our strong
customer relationships we are able to support consumers to navigate through
these challenging times.
Changing regulatory landscape
Hilton Foods has a strong basis of environmental, social and governance
policies and strategy. We recognise the potential disruption from growing
environmental regulations and the resourcing requirements to meet upcoming
disclosure requirements. We are actively enhancing our mitigations, including
third party risk management and supply chain due diligence.
We continue to monitor international regulatory and trade environments as they
evolve and amend processes and operations as required.
We work closely with our customers and supply chains to adapt to further
revisions to border processes and trade agreements.
Cyber Risk
Information systems and cyber security risk continues to pose a threat to the
Group and remains a principal risk. We are aware that specific sectors
including manufacturing and logistics are increasingly a focus of such
attacks. Whilst the cyber security risk profile for Hilton Foods has remained
stable during the year, we recognise the challenges and opportunities that are
emerging through the development of Artificial Intelligence. We continue to
invest in our IT systems to remain protected and match the ever-increasing
number and diversity of external security threats.
The risks and uncertainties outlined above had no material adverse impact on
the results for the 26 weeks to 29 June 2025 and are expected to remain
virtually unchanged for the remainder of the 2025 financial year.
Steve Murrells CBE
Chief Executive Officer
Matt Osborne
Chief Financial Officer
2 September 2025
Statement of Directors' responsibilities
The Directors confirm that the condensed consolidated interim financial
statements have been prepared in accordance with UK-adopted International
Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority and that the interim management report includes a fair
review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:
a) an indication of important events that have occurred during the first
26 weeks and their impact on the condensed set of financial statements, and a
description of principal risks and uncertainties for the remaining 26 weeks of
the financial year; and
b) material related party transactions in the first 26 weeks and any
material changes in the related party transactions described in the last
annual report.
The maintenance and integrity of the Hilton Food Group plc website is the
responsibility of the Directors; the work carried out by the authors does not
involve consideration of these matters and, accordingly, the auditors accept
no responsibility for any changes that might have occurred to the interim
financial statements since they were initially presented on the website.
The Directors of Hilton Food Group plc are listed in the 2024 Hilton Food
Group plc Annual report and financial statements. On 31 May 2025 Sarah Perry
stepped down from the Board. On 1 June 2025 Bindi Foyle and Samy Zekhout
joined the Board as Independent Non-Executive Directors. There have been no
other changes in Directors since 29 December 2024. A list of current Directors
is maintained on the Hilton Food Group plc website at
https://www.hiltonfoods.com/.
On behalf of the Board
Mark Allen OBE
Chairman
Matt Osborne
Chief Financial
Condensed Consolidated Income statement
26 weeks 26 weeks
ended ended
29 June 2025 30 June 2024
Continuing operations Note £'m £'m
Revenue 4 2,092.4 1,943.8
Cost of sales (1,869.4) (1,727.1)
Gross profit 223.0 216.7
Distribution costs (24.1) (22.6)
Administrative expenses (157.8) (150.3)
Share of profit/(loss) in joint ventures and associates 0.2 (0.2)
Operating profit 4,16 41.3 43.6
Finance costs - net (17.0) (18.1)
Profit before income tax 24.3 25.5
Income tax expense 5 (7.2) (7.6)
Profit for the period 17.1 17.9
Profit attributable to:
Owners of the parent 16.5 16.9
Non-controlling interests 0.6 1.0
17.1 17.9
Earnings per share for profit attributable to owners of the parent
- Basic (pence) 7 18.6 18.8
- Diluted (pence) 7 18.3 18.6
The above condensed consolidated income statement should be read in
conjunction with the accompanying notes.
Condensed Consolidated Statement of comprehensive income
26 weeks ended 26 weeks ended
29 June 2025 30 June 2024
£'m £'m
Profit for the period 17.1 17.9
Other comprehensive income/(expense)
Items that may be subsequently reclassified to the income statement
Currency translation differences 4.3 (2.8)
Gain/(loss) on cash flow hedges during the period 4.7 (2.8)
Less: Cumulative loss arising on hedging instruments reclassified to profit or 1.6 -
loss
Tax on cash flow hedges reserves (1.6) -
4.7 (2.8)
Other comprehensive income/(expense) for the period net of tax 9.0 (5.6)
Total comprehensive income for the period 26.1 12.3
Total comprehensive income attributable to:
Owners of the parent 25.3 11.3
Non-controlling interests 0.8 1.0
26.1 12.3
The above condensed consolidated statement of comprehensive income should be
read in conjunction with the accompanying notes.
Condensed Consolidated Balance sheet
29 June 2025 30 June 2024 29 December 2024
Note £'m £'m £'m
Assets
Non-current assets
Property, plant and equipment 8 343.3 321.4 329.7
Lease: Right-of-use assets 8 162.7 184.2 172.8
Intangible assets 8 142.4 152.3 141.0
Investments 9 11.5 11.5 12.1
Deferred income tax assets 17.8 15.3 17.0
677.7 684.7 672.6
Current assets
Inventories 261.8 189.1 197.7
Trade and other receivables 242.2 211.7 253.7
Current tax assets 1.7 - 0.4
Derivative financial assets 14 5.5 0.8 0.1
Cash and cash equivalents 92.2 95.3 111.9
603.4 496.9 563.8
Total assets 1,281.1 1,181.6 1,236.4
Equity and liabilities
Equity
Ordinary shares 11 9.0 9.0 9.0
Share premium 144.9 144.9 144.9
Employee share schemes reserve 9.8 8.6 9.0
Foreign currency translation reserve (8.0) (5.7) (12.1)
Cashflow hedging reserve 7.3 4.5 2.6
Other reserves (30.8) (30.8) (30.8)
Retained earnings 178.1 172.3 184.0
310.3 302.8 306.6
Non-controlling interests 9.6 10.7 10.2
Total equity 319.9 313.5 316.8
Liabilities
Non-current liabilities
Borrowings 10 267.0 205.2 213.8
Lease liabilities 178.8 202.8 189.1
Deferred income tax liabilities 12.1 10.8 9.6
457.9 418.8 412.5
Current liabilities
Borrowings 10 27.6 27.1 29.5
Lease liabilities 17.6 15.5 16.9
Trade and other payables 452.2 404.0 451.8
Derivative financial liabilities 14 2.2 0.2 3.1
Current tax liabilities 3.7 2.5 5.8
503.3 449.3 507.1
Total liabilities 961.2 868.1 919.6
Total equity and liabilities 1,281.1 1,181.6 1,236.4
The above condensed consolidated balance sheet should be read in conjunction
with the accompanying notes.
Condensed Consolidated Statement of changes in equity
Attributable to owners of the parent
Share capital Share premium Employee share schemes reserve Foreign currency translation reserve Cashflow hedge reserve Other reserve Retained earnings Total Non-controlling interests Total equity
Note £'m £'m £'m £'m £'m £'m £'m £'m £'m £'m
Balance at 31 December 2023 9.0 144.9 6.8 (3.0) 7.4 (30.8) 176.0 310.3 11.2 321.5
Comprehensive income
Profit for the period - - - - - - 16.9 16.9 1.0 17.9
Currency translation differences - - - (2.7) - - - (2.7) (0.1) (2.8)
Loss on cash flow hedging - - - - (2.9) - - (2.9) 0.1 (2.8)
Total comprehensive income for the period - - - (2.7) (2.9) - 16.9 11.3 1.0 12.3
Employee share schemes - value of employee services - - 1.8 - - - - 1.8 - 1.8
Dividends paid 6 - - - - - - (20.6) (20.6) (1.5) (22.1)
Total transactions with owners - - 1.8 - - - (20.6) (18.8) (1.5) (20.3)
Balance at 30 June 2024 9.0 144.9 8.6 (5.7) 4.5 (30.8) 172.3 302.8 10.7 313.5
Balance at 29 December 2024 9.0 144.9 9.0 (12.1) 2.6 (30.8) 184.0 306.6 10.2 316.8
Comprehensive income
Profit for the period - - - - - - 16.5 16.5 0.6 17.1
Currency translation differences - - - 4.1 - - - 4.1 0.2 4.3
Gain on cash flow hedging - - - - 4.7 - - 4.7 - 4.7
Loss arising on hedging instruments reclassified to profit or loss - - - - 1.6 - - 1.6 - 1.6
Tax on cash flow hedge reserve - - - - (1.6) - - (1.6) - (1.6)
Total comprehensive income for the period - - - 4.1 4.7 - 16.5 25.3 0.8 26.1
Employee share schemes - value of employee services - - 0.9 - - - - 0.9 - 0.9
Tax on employee share schemes - - (0.1) - - - - (0.1) - (0.1)
Dividends paid 6 - - - - - - (22.4) (22.4) (1.4) (23.8)
Total transactions with owners - - 0.8 - - - (22.4) (21.6) (1.4) (23.0)
Balance at 29 June 2025 9.0 144.9 9.8 (8.0) 7.3 (30.8) 178.1 310.3 9.6 319.9
The above condensed consolidated statement of changes in equity should be read
in conjunction with the accompanying notes.
Condensed Consolidated Cash flow statement
26 weeks ended 26 weeks ended
29 June 2025 30 June 2024
£'m £'m
Cash flows from operating activities
Cash generated from operations 26.9 88.9
Interest paid (17.8) (18.6)
Income tax paid (9.7) (6.1)
Net cash (used in)/generated from operating activities (0.6) 64.2
Cash flows from investing activities
Acquisition of investments in joint ventures and associates - (4.4)
Purchases of property, plant and equipment (37.8) (25.6)
Proceeds from sale of property, plant and equipment 0.5 0.9
Purchases of intangible assets (3.9) (1.5)
Interest received 0.5 0.5
Dividends received from joint venture 0.7 0.5
Net cash used in investing activities (40.0) (29.6)
Cash flows from financing activities
Proceeds from borrowings 64.3 33.4
Repayments of borrowings (11.9) (67.0)
Payment of lease liability (8.6) (8.7)
Dividends paid to owners of the parent (22.4) (20.6)
Dividends paid to non-controlling interests (1.4) (1.5)
Net cash generated from/(used in) financing activities 20.0 (64.4)
Net decrease in cash and cash equivalents (20.6) (29.8)
Cash and cash equivalents at beginning of the period 111.9 126.7
Exchange gains/(losses) on cash and cash equivalents 0.9 (1.6)
Cash and cash equivalents at end of the period 92.2 95.3
The above condensed consolidated statement of cash flows should be read in
conjunction with the accompanying notes.
Notes to the interim financial statements
1 General information
Hilton Food Group plc ("the Company") and its subsidiaries (together "the
Group") is a leading international multi-protein food business.
The Company is a public company limited by shares incorporated and domiciled
in the UK. The address of the registered office is 2-8 The Interchange, Latham
Road, Huntingdon, Cambridgeshire PE29 6YE. The registered number of the
Company is 06165540.
These interim financial statements were approved for issue on 2 September
2025.
These interim financial statements do not comprise statutory accounts within
the meaning of Section 434 of the Companies Act 2006. Statutory accounts for
the 52 weeks ended 29 December 2024 were approved by the Board of Directors on
2 April 2024 delivered to the Registrar of Companies. The report of the
auditor on those accounts was unqualified, did not contain an emphasis of
matter paragraph and did not contain any statement under Section 498 of the
Companies Act 2006.
2 Basis of preparation
This consolidated interim financial report for the 26 weeks ended 29 June 2025
(prior financial period 26 weeks ended 30 June 2024) has been prepared in
accordance with the UK-adopted International Accounting Standard 34, 'Interim
Financial Reporting' and the Disclosure Guidance and Transparency Rules
sourcebook of the UK Financial Conduct Authority.
Going concern
The consolidated interim financial statements have been prepared on the going
concern basis as the Directors consider that adequate resources exist for the
Company to continue in operation for the foreseeable future, being 12 months
from the date of this report (the relevant period). There is significant
liquidity/financing headroom on 29 June 2025 (£47.0m) and throughout the
going concern forecast period. Forecast covenant compliance is considered
further below.
The Group's banking facility has two financial covenants, a net debt to
adjusted EBITDA (leverage) covenant and interest cover covenant, both of which
are tested half yearly in June and December.
The financial covenants for the going concern period as follows:
29 June 2025 28 December 2025 28 June 2026
Net bank debt to adjusted EBITDA 3.0x 3.0x 3.0x
Interest cover 4.0x 4.0x 4.0x
The Group has undertaken a detailed going concern assessment, including a
review of its budget and forecasts for the 2025 financial year and its
longer-term plans, including consideration of the principal risks faced by the
Group. The resilience of the Group in the face of uncertain challenges has
then been assessed by applying significant downside sensitivities to the
Group's cash flow projections. Allowing these sensitivities and potential
mitigating actions the Board is satisfied that the Group is able to continue
to operate well within its banking covenants and has adequate headroom under
its existing committed facilities. The Directors are satisfied that the Group
has adequate resources to continue to operate and meet its liabilities as they
fall due for a period of at least 12 months from the date of signing these
interim financial statements and therefore consider it appropriate to adopt
the going concern basis of accounting in preparing the consolidated interim
financial statements.
2 Basis of preparation (continued)
Estimates and judgements
The preparation of interim financial statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates.
The determination of the net realisable value of inventories requires
management judgement in assessing expected selling prices and related costs to
sell. In performing this assessment, management has considered current market
conditions and demand. Based on this review, the Group concluded that
inventories are appropriately stated at the lower of cost and net realisable
value at the reporting date and that inventory provisions that are required
are appropriately recognised.
Presentation currency and rounding
Unless otherwise stated, amounts are presented in £ millions, rounded to one
decimal place. During the period the Group changed the unit of presentation
from thousands to millions; prior-period comparatives have been re-presented
in £ millions on a consistent basis. As a consequence of rounding,
comparative amounts to the HY 2024 results may differ by up to £0.1 million
from figures previously published. This change is presentational only and has
no impact on recognition, measurement or cash flows.
New and amended standards adopted by the Group
A number of new or amended standards became applicable for the current
reporting period. The Group did not have to change its accounting policies or
make retrospective adjustments as a result of adopting these standards.
3 Accounting policies
The accounting policies adopted in the preparation of these interim results
are consistent with those applied in the preparation of the Group's annual
report for the year ended 29 December 2024 and corresponding interim reporting
period.
The Group has disclosed exceptional items during the period, the accounting
policy in respect of these is summarised below.
Alternative performance measure
The Group's performance is assessed using a number of alternative performance
measures (APMs).
The Group's alternative profitability measures are presented before other
adjusting/exceptional items, amortisation of certain intangible assets and
depreciation of fair value adjustments made to property, plant and equipment
acquired through business combinations and the impact of IFRS 16 - Leases.
The measures are presented on this basis, as management believe they provide
useful additional information about the Group's performance and aids a more
effective comparison of the underlying Group's trading performance from one
period to the next. In accordance with the requirements of the Group's
financing agreements, certain APMs (including EBITDA, operating profit, net
debt and leverage ratios) are presented on a pre-IFRS 16 basis
Other adjusting/exceptional items are not defined under IFRS. However, the
Group classifies other adjusting/exceptional items as those that are
separately identifiable by virtue of their size, nature or expected frequency
and that therefore warrant separate presentation.
As detailed in note 16 during the period to 29 June 2025 the Group has
recognised other adjusting/exceptional items in respect of costs associated
with the Foppen operational disruption and re-organisation/restructuring
programs. The operating profit reconciliations between statutory and adjusted
measures used by the Group is presented in note 16. Presentation of these
other adjusting/exceptional items and the reconciliations between adjusted and
statutory measures is not intended to be a substitute for or intended to
promote the adjusted measures above statutory measures.
Current income tax
Taxes on income in the interim periods are accrued using the tax rate that
would be applicable to expected total annual earnings.
4 Segment information
Management have determined the operating segments based on the reports
reviewed by the Executive Directors that are used to make strategic decisions.
The Executive Directors are considered to be the Chief Operating Decisions
Makers in the Group.
The Executive Directors have considered the business from both a geographic
and product perspective.
From a geographic perspective, the Executive Directors consider that the Group
has four operating segments each led by a regional CEO: i) UK & Ireland
which comprises the Group's operations in United Kingdom, Republic of Ireland
and Canada; ii) Europe which includes the Group's operations in the
Netherlands, Sweden, Denmark, Central Europe and Portugal; iii) APAC
comprising the Group's operations in Australia and New Zealand; and iv)
Central costs.
From a product perspective the Executive Directors consider that the Group has
only one identifiable product, wholesaling of food protein products including
meat, fish and vegetarian. The Executive Directors consider that no further
segmentation is appropriate, as all of the Group's operations are subject to
similar risks and returns and exhibit similar long term financial performance.
The segment information provided to the Executive Directors for the reportable
segments is as follows:
Operating
Total segment profit/(loss)
revenue segment result
£'m £'m
26 weeks ended 29 June 2025
UK & Ireland 797.3 20.2
Europe 544.9 12.8
APAC 750.2 16.9
Central - (8.6)
Total 2,092.4 41.3
26 weeks ended 30 June 2024
UK & Ireland 709.6 18.7
Europe 519.7 16.6
APAC 714.5 16.2
Central - (7.9)
Total 1,943.8 43.6
4 Segment information (continued)
The Group uses a number of alternative performance measures to assess
underlying performance, these are explained and reconciled to the segmental
results presented above in note 16. There is no inter-segment revenue included
in the figures above.
29 June 30 June 29 December
2025 2024 2024
£'m £'m £'m
Total assets
UK & Ireland(1) 495.6 392.0 456.9
Europe 376.3 332.8 343.5
APAC 344.9 400.3 371.4
Central 44.8 41.2 47.2
Total segment assets 1,261.6 1,166.3 1,219.0
Current income tax assets 1.7 - 0.4
Deferred income tax assets 17.8 15.3 17.0
Total assets per balance sheet 1,281.1 1,181.6 1,236.4
29 June 30 June 29 December
2025 2024 2024
£'m £'m £'m
Total liabilities
UK & Ireland 220.0 177.8 209.0
Europe 202.4 152.7 178.9
APAC 297.4 359.4 325.1
Central 225.6 164.9 191.2
Total segment liabilities 945.4 854.8 904.2
Current income tax liabilities 3.7 2.5 5.8
Deferred income tax liabilities 12.1 10.8 9.6
Total liabilities per balance sheet 961.2 868.1 919.6
(1)UK & Ireland includes £20.7m of assets under construction that relate
to the building of the Canada factory.
5 Income tax expense
Income tax expense is recognised based on management's best estimate of the
weighted average annual income tax rate expected for the full financial year.
The estimated average annual tax rate used for the 26 weeks to 29 June 2025 is
29.6%. The estimated average annual tax rate used for the 26 weeks to 30 June
2024 was 29.8%.
6 Dividends
26 weeks ended 26 weeks ended
29 June 2025 30 June 2024
£'m £'m
Final dividend paid 24.9p per ordinary share (2024: 23.0p) 22.4 20.6
Total dividends paid 22.4 20.6
The Directors have approved the payment of an interim dividend of 10.1p per
share payable on 28 November 2025 to shareholders who are on the register at
31 October 2025. This interim dividend, amounting to £9.1m has not been
recognised as a liability in these interim financial statements. It will be
recognised in shareholders' equity in the 52 weeks to 28 December 2025.
Dividends paid to non-controlling interests in the period totalled £1,367,000
(2024: £1,496,000).
7 Earnings per share
Basic earnings per share are calculated by dividing the profit attributable to
equity holders of the Company by the weighted average number of ordinary
shares in issue during the period.
Diluted earnings per share are calculated by adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares. The Company has share options for which a
calculation is performed to determine the number of shares that could have
been acquired at fair value (determined as the average annual market share
price of the Company's shares) based on the monetary value of the subscription
rights attached to outstanding share options. The number of shares calculated
as below is compared with the number of shares that would have been issued
assuming the exercise of the share options.
26 weeks ended 26 weeks ended
29 June 2025 30 June 2024
Basic Diluted Basic Diluted
Profit attributable to equity holders of the Company (£'m) 16.5 16.5 16.9 16.9
Weighted average number of ordinary shares in issue (millions) 88.9 88.9 89.7 89.7
Adjustment for share options (millions) - 1.2 - 0.8
Adjusted weighted average number of ordinary shares (millions) 88.9 90.1 89.7 90.5
Basic and diluted earnings per share (pence) 18.6 18.3 18.8 18.6
8 Property, plant and equipment, right-of-use and intangible assets
Property, plant and equipment Lease: Right-of-use assets Intangible assets
£'m £'m £'m
26 weeks ended 30 June 2024
Opening net book amount as at 1 January 2024 324.1 194.1 156.1
Exchange adjustments (4.3) (3.8) -
Additions 25.6 1.9 1.5
Disposals (0.9) (0.9) -
Lease modifications - 2.5 -
Transfers to/(from) intangibles (0.1) - 0.1
Depreciation and amortisation (23.0) (9.6) (5.4)
Closing net book amount as at 30 June 2024 321.4 184.2 152.3
26 weeks ended 29 June 2025
Opening net book amount as at 30 December 2024 329.7 172.8 141.0
Exchange adjustments 1.2 (2.2) 1.4
Additions 37.8 2.5 3.9
Disposals (0.5) (0.3) -
Lease modifications - 0.2 -
Depreciation and amortisation (23.5) (10.3) (5.3)
Transfers to/(from) intangibles (1.4) - 1.4
Closing net book amount as at 29 June 2025 343.3 162.7 142.4
The Group has commitments to purchase property, plant and equipment of
£59,500,000 (2024: £14,700,000).
Goodwill impairment testing
The Group conducted a review for indicators of impairment as at 29 June 2025
for each cash generating unit or groups of cash generating units. The analysis
confirmed that no segment exhibited any indicators of impairment. Accordingly,
no interim impairment testing has been performed for the half-year. Goodwill
and intangible assets with indefinite useful lives will continue to be subject
to the Group's annual impairment testing process, or earlier if indicators of
impairment are identified.
9 Investments
Investments in joint ventures and associates
26 weeks ended 26 weeks ended 52 weeks ended
29 June 30 June 29 December
2025 2024 2024
£'m £'m £'m
At the beginning of the period 12.1 7.9 7.9
Additions - 4.4 4.4
Profit/(loss) for the period 0.2 (0.2) 0.4
Dividends received (0.7) (0.5) (0.6)
Effect of movements in foreign exchange (0.1) (0.1) -
At the end of the period 11.5 11.5 12.1
The Group made additional investments of £nil (2024: £4,400,000) in Cellular
Agriculture Limited.
10 Borrowings
29 June 30 June 29 December
2025 2024 2024
£'m £'m £'m
Current 27.6 27.1 29.5
Non-current 267.0 205.2 213.8
Total borrowings 294.6 232.3 243.3
Movements in borrowings is analysed as follows:
26 weeks ended 26 weeks ended 52 weeks ended
29 June 30 June 29 December
2025 2024 2024
£'m £'m £'m
Opening amount 243.3 266.4 266.4
Exchange adjustments (1.1) (0.5) (2.1)
Proceeds from borrowings 64.3 33.4 10.4
Repayment of borrowings (11.9) (67.0) (31.4)
Closing amount 294.6 232.3 243.3
Net borrowing rose by £51.3m to £294.6m, driven by operational and strategic
initiatives undertaken in the period. The Group drew on its existing committed
banking facilities primarily to fund strategic inventory purchases in the UK
& Ireland to support customer demand and supply-chain resilience, and the
£15.1m CAPEX investment in Canada. Facility terms and the overall maturity
profile were unchanged, with additional funding sourced within the Group's
current headroom.
11 Ordinary shares
Number of Ordinary
shares shares Total
(thousands) £'m £'m
At 1 January 2024 89,602 9.0 9.0
Issue of new shares on exercise of employee share options 100 - -
At 30 June 2024 89,702 9.0 9.0
At 30 December 2024 89,827 9.0 9.0
Issue of new shares on exercise of employee share options 78 - -
At 29 June 2025 89,905 9.0 9.0
All ordinary shares of 10p each have equal rights in respect of voting,
receipt of dividends and repayment of capital.
12 Cash generated from operations
26 weeks ended 26 weeks ended
29 June 2025 30 June 2024
Group £ 'm £ 'm
Profit before income tax 24.3 25.5
Finance costs - net 17.0 18.1
Operating profit 41.3 43.6
Adjustments for non-cash items:
Share of post-tax (profits)/losses of joint venture (0.2) 0.2
Depreciation of property, plant and equipment 23.5 23.0
Depreciation of leased assets 10.3 9.6
Amortisation of intangible assets 5.3 5.4
Loss on disposal of fixed assets - 0.9
Adjustment in respect of employee share schemes 0.9 1.8
Changes in working capital:
Inventories (64.1) (11.5)
Trade and other receivables 11.5 60.5
Trade and other payables 0.4 (44.6)
Net exchange differences (2.0) -
Cash generated from operations 26.9 88.9
13 Related party transactions
During the period, group companies entered into the following transactions
with related parties who are not members of the group, and the following
amounts were outstanding at the reporting date:
26 weeks ended 26 weeks ended 52 weeks ended
29 June 30 June 29 December
2025 2024 2024
Group sales of services: £'m £'m £'m
Sohi Meat Solutions Distribuicao de Carnes SA -
Fee for services 1.3 1.8 3.7
Sohi Meat Solutions Distribuicao de Carnes SA -
Recharge of joint venture costs 0.3 0.1 0.7
Group purchases of services:
Agito Holdings Limited 11.7 1.2 9.2
Amounts owing from related parties were as follows:
29 June 30 June 29 December
2025 2024 2024
£'m £'m £'m
Agito Holdings Limited 2.2 3.1 3.0
Sohi Meat Solutions Distribuicao de Carnes SA 1.7 0.3 3.9
Sphere Design Limited - 0.2 -
Cellular Agriculture Ltd 1.9 1.4 -
Amounts owing to related parties were as follows:
29 June 30 June 29 December
2025 2024 2024
£'m £'m £'m
Agito Holdings Limited 0.2 0.2 1.0
Sohi Meat Solutions Distribuicao de Carnes SA 0.7 0.5 0.5
14 Financial instruments
The Group holds a number of financial instruments which are carried at cost
which is the equivalent of their fair value unless otherwise stated below.
The Group has derivative financial instruments amounting to £2,200,000
liability and £5,500,000 asset (30 June 2024: £212,000 liability and
£762,000 asset). The derivative financial instruments are plain vanilla
derivatives including foreign currency options/forwards. The instruments that
have a fair value where specific valuation techniques are used to arrive at
the carrying value which include for foreign currency forwards - present value
of future cash flows based on the forward exchange rates at the balance sheet
date and for foreign currency options - option pricing models. These
derivative financial instruments are classified as Level 2.
The fair values have been classified into three categories depending on the
inputs used in the valuation technique.
The categories are as follows:
Level 1: quoted prices for identical instruments;
Level 2: directly or indirectly observable market inputs, other than Level 1
inputs; and
Level 3: inputs which are not based on observable market data.
Specific valuation techniques used to value financial instruments include:
· the use of quoted market prices or dealer quotes for similar
instruments
· for foreign currency forwards - the present value of future cash
flows based on the forward exchange rates at the reporting date
· for foreign currency options - option pricing models (e.g.
Black-Scholes model), and
· for other financial instruments - discounted cash flow analysis.
15 Post balance sheet event
On 15 July 2025, the Group announced that it had agreed to secure a strategic
external investment in Foods Connected Limited ("Foods Connected") from Apax
Global Impact Fund LP, a fund managed by Apax Partners LLP ("Apax"). Under the
terms of the transaction, Apax have made a primary equity investment in Foods
Connected and also acquired equity interest from existing shareholders. The
Group will receive gross cash consideration of £22 million in exchange for
the sale of a proportion of its shareholding in Foods Connected. As at the
reporting date, the Group held a 65% interest in Foods Connected, which
continued to be consolidated as a subsidiary. On completion, following initial
dilution, and the partial disposal of its interest the Group will hold a 26%
interest in Foods Connected. The transaction is subject to customary
regulatory approvals and has not yet completed as at the date of this report.
There is no impact on these condensed consolidated financial statements in
respect of this transaction in accordance with IAS 10 'Events after the
reporting period.
16 Alternative Performance Measures
The Group's performance is assessed using a number of alternative performance
measures (APMs) that are not required or defined under IFRS.
The Group considers adjusted results to be an important measure used to
monitor how the Group is performing as they achieve consistency and
comparability between reporting periods and management believe they provide
useful additional information about the Group's performance and trends to
stakeholders.
These measures are consistent with those used internally and are considered
important to understanding the financial performance and financial health of
the Group.
The Group's alternative profitability measures are presented before other
adjusting/exceptional items, amortisation of certain intangible assets and
depreciation of fair value adjustments made to property, plant and equipment
acquired through business combinations and the impact of IFRS 16 - Leases.
Adjusted profitability measures are reconciled to unadjusted IFRS results on
the face of the income statement below with other APMs used by the Group
defined in the subsequent glossary.
26 weeks ended 26 weeks ended
29 June 30 June
2025 2024
£'m £'m
Operating profit 41.3 43.6
Add back: IFRS 16 depreciation 10.3 9.6
Less: IAS 17 lease accounting charges (13.0) (11.3)
Add back: Amortisation of acquired intangibles and fair value adjustments 4.7 4.6
Other adjusting/exceptional items:
Costs related to the Belgium fire - 0.1
Reorganisation/restructuring costs(1) 1.3 0.2
Foppen operational disruption(2) 2.0 -
Adjusting items 5.3 3.2
Adjusted operating profit 46.6 46.8
Profit before tax 24.3 25.5
Adjustment to operating profit as above 5.3 3.2
Add back: IFRS 16 interest 4.0 4.1
Other adjusting/exceptional items:
Costs relating to the Belgium fire - 0.7
Adjusting items 9.3 8.0
Adjusted PBT 33.6 33.5
Profit attributable to share holders 16.5 16.9
Adjustments to PBT 9.3 8.0
Tax effect of adjustments to PBT (2.2) (1.7)
Adjusting items 7.1 6.3
Adjusted profit attributable to members of the parent 23.6 23.2
Adjusted earnings per share
Basic 26.5 25.8
Diluted 26.2 25.6
16 Alternative Performance Measures (continued)
26 weeks ended 26 weeks ended
29 June 30 June
2025 2024
£'m £'m
Operating profit 41.3 43.6
Add back: Depreciation, amortisation and impairment 39.1 38.0
EBITDA 80.4 81.6
Less: IAS 17 lease accounting (13.0) (11.3)
Other adjusting/exceptional items:
Costs related to the Belgium fire - 0.1
Reorganisation/restructuring costs(1) 1.3 0.2
Foppen operational disruption(2) 2.0 -
Adjusting items (9.7) (11.0)
Adjusted EBITDA 70.7 70.6
26 weeks ended 26 weeks ended
29 June 30 June
2025 2024
£'m £'m
Net cash (used in)/generated from operating activities (0.6) 64.2
Net cash used in investing (40.0) (29.6)
Free cash flow (40.6) 34.6
Add back:
Other Investment - 4.4
Dividends received from joint venture 0.7 0.5
Costs related to the Belgium fire - 0.1
Reorganisation/restructuring costs(1) 1.3 0.2
Foppen operational disruption(2) 2.0 -
Less: IAS 17 lease accounting charges (13.0) (11.3)
IFRS 16 Interest 4.0 4.1
IFRS 16 working capital (0.3) (2.6)
Adjusting items (5.3) (4.6)
Add back: Canada growth capex 15.1 -
Adjusted free cash flow (30.8) 30.0
16 Alternative Performance Measures (continued)
Segmental operating profit reconciles to adjusted segmental operating profit
as follows:
UK&I Europe APAC Central Total
26 weeks end 29 June 2025 £'m £'m £'m £'m £'m
Operating profit/(loss) 20.2 12.8 16.9 (8.6) 41.3
Add back: IFRS 16 depreciation 1.8 3.3 5.1 0.1 10.3
Less: IAS 17 lease accounting charges (2.2) (3.7) (7.0) (0.1) (13.0)
Add back: Amortisation of acquired intangibles and fair value adjustments 2.5 2.2 - - 4.7
Other adjusting/exceptional items:
Reorganisation/restructuring costs(1) 0.1 0.5 0.2 0.5 1.3
Foppen operational disruption(2) - 2.0 - - 2.0
Adjusting items 2.2 4.3 (1.7) 0.5 5.3
Adjusted operating profit/(loss) 22.4 17.1 15.2 (8.1) 46.6
UK&I Europe APAC Central Total
26 weeks end 30 June 2024 £'m £'m £'m £'m £'m
Operating profit/(loss) 18.7 16.6 16.2 (7.9) 43.6
Add back: IFRS 16 depreciation 1.7 2.3 5.6 0.1 9.7
Less: IAS 17 lease accounting charges (2.0) (2.0) (7.3) (0.1) (11.4)
Add back: Amortisation of acquired intangibles and fair value adjustments 2.5 2.1 - - 4.6
Other adjusting/exceptional items:
Costs related to the Belgium fire - 0.1 - - 0.1
Reorganisation costs 0.2 - - - 0.2
Adjusting items 2.4 2.5 (1.7) - 3.2
Adjusted operating profit/(loss) 21.1 19.1 14.5 (7.9) 46.8
Other adjusting/exceptional items
(1)Reorganisation/restructuring Costs
During the period other adjusting/non-underlying reorganisation costs of
£1.3m (2024: £0.2m) have been recognised by the Group. These costs consist
of ongoing efficiency and restructuring programs resulting in redundancies at
a number of facilities operated by the Group.
(2)Foppen Operational Disruption
Foppen's operations which have been impacted by regulatory restrictions on
shipments of smoked salmon products into the US from our Greek facility. To
ensure continued availability and unbroken supply to key customers, we have
temporarily transitioned production to our facility in the Netherlands. We are
working closely with the FDA and are taking the necessary corrective actions
to resume production in Greece. As a result of this the Group has recognised a
total of £2.0m of non-underlying costs in the period in respect of inventory
provisions and is incurring incremental costs as it reorganises operations, as
they temporarily transfer to the Netherlands, alongside related air freight
costs.
Glossary
Alternative Performance Measures
In the reporting of financial information, the Group uses certain measures
that are not required under IFRS. These additional measures (commonly referred
to as APMs) provide additional information on the performance of the business
and trends to stakeholders. These measures are consistent with those used
internally and are considered important to understanding the financial
performance and financial health of the Group. APMs are considered to be an
important measure to monitor how the businesses are performing because this
provides a meaningful comparison of how the business is managed and measured
on a day-to-day basis and achieves consistency and comparability between
reporting periods.
These APMs may not be directly comparable with similarly titled measures
reported by other companies and they are not intended to be a substitute for,
or superior to, IFRS measures.
APM Definition and purpose
Constant currency The Group uses GBP based constant currency models to measure performance.
These are calculated by applying 2025 26 weeks average exchange rates to local
currency reported results for the current and prior periods. This gives a GBP
denominated Income Statement which excludes any variances attributable to
foreign exchange rate movements.
Free cash flow Free cash flow represents cash generated from operating activities less cash
flows from investing activities.
This measure provides additional useful information in respect of cash
generation and is consistent with how business performance is measured
internally.
Adjusted free cash flow Adjusted free cash flow represents cash generated from operating activities
less cash flows from investing activities excluding other adjusting/
exceptional items, amortisation of certain intangible assets and depreciation
of fair value adjustments made to property, plant and equipment acquired
through business combinations and the impact of IFRS 16 - leases.
Net bank debt Net bank debt represents borrowings excluding lease liabilities less cash
equivalents.
Net bank debt is one measure that could be used to indicate the strength of
the Group's Balance Sheet position and is a useful measure of the indebtedness
of the Group.
Adjusted net finance costs Adjusted net finance costs represents finance costs excluding exceptional
items and lease interest.
Net finance costs is borrowing costs and other costs that are incurred in
connection with the borrowing of funds less interest received from banks for
the deposit of funds.
Adjusted taxation charge Taxation charge excluding adjusting items. Adjusting measures are reconciled
to statutory measures by removing adjusting items, the nature of which are
disclosed in note 16.
Effective adjusted tax rate The income tax charge for the Group excluding adjusting tax items, and the tax
impact of adjusting items, divided by adjusted profit before tax. This measure
is a useful indicator of the ongoing tax rate for the Group.
Return on capital employed (ROCE) Annualised 12 month adjusted operating profit divided by average opening and
closing capital employed representing total equity adjusted for net bank
cash/debt, leases, derivatives and deferred tax.
Independent review report to Hilton Food Group plc
Report on the condensed consolidated interim financial statements
Conclusion
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2025 which comprises the Condensed Consolidated Income Statement, the
Condensed Consolidated Statement of Comprehensive Income, Condensed
Consolidated Balance Sheet, the Condensed Consolidated Statement of changes in
equity, the Condensed Consolidated Cash Flow Statement, and related notes 1 to
16, and the glossary.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 29 June 2025 is not prepared, in all
material respects, in accordance with United Kingdom adopted International
Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of
the United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" issued by the Financial Reporting
Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim
financial information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
As disclosed in note 2, the annual financial statements of the group are
prepared in accordance with United Kingdom adopted international accounting
standards. The condensed set of financial statements included in this
half-yearly financial report has been prepared in accordance with United
Kingdom adopted International Accounting Standard 34, "Interim Financial
Reporting".
Conclusion Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This Conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410; however future events or conditions may cause the entity to
cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the group's ability to continue as a going concern, disclosing
as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the
company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly financial report, we are responsible for
expressing to the company a conclusion on the condensed set of financial
statements in the half-yearly financial report. Our Conclusion, including our
Conclusion Relating to Going Concern, are based on procedures that are less
extensive than audit procedures, as described in the Basis for Conclusion
paragraph of this report.
Use of our report
This report is made solely to the company in accordance with ISRE (UK) 2410.
Our work has been undertaken so that we might state to the company those
matters we are required to state to it in an independent review report and for
no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company, for our review work,
for this report, or for the conclusions we have formed.
Deloitte LLP
Statutory Auditor
Cambridge, United Kingdom
2 September 2025
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