Hilton Food Group (HFG) H1 2025 earnings summary

Executive summary

• Delivered robust first-half results with 10.4% revenue growth and 2.5% volume increase year-over-year, despite inflationary pressures and operational challenges in seafood.

• Red meat and convenience volumes grew 3.1%, outpacing the market, while white fish demand softened due to raw material inflation and Foppen operational issues.

• Strategic progress includes expansion in Canada and Saudi Arabia, investment in Foods Connected, and ongoing organizational optimization.

• New strategic partner joined Foods Connected, enhancing growth opportunities.

Financial highlights

• Revenue up 10.4% year-over-year on a constant currency basis to £2.09bn; actual FX revenue up 7.6%.

• Adjusted operating profit reached £46.6m (+1.9% YoY constant currency); adjusted profit before tax up 3.0% constant currency to £33.6m.

• Interim dividend per share increased 5.2% to 10.1p; net debt rose to £202.4m, leverage at 1.3x EBITDA.

• Adjusted free cash outflow of £30.8m due to inventory build and Canada capital spend.

• Capital expenditure of £41.2m, including £15.1m for Canadian expansion.

Outlook and guidance

• Retail meat business expected to remain strong; seafood headwinds to persist while Foppen recovers.

• Canadian facility with Walmart to launch in early 2027; Saudi JV with NADEC on track for H2 2026 revenue and 2027 profit contribution.

• Full-year results expected within the range of analyst expectations (£76.8m–£81m adjusted PBT for 2025), supported by growth pipeline and resilient core business.