Hilton Food Group (HFG) H1 2026 earnings summary

Executive summary

• Adjusted profit before tax for H1 2026 was £32.8m, ahead of expectations, with profit growth in core meat and fresh prepared foods, and initial benefits from Seachill improvement plans, though Foppen continues to face challenges.

• Full year adjusted PBT guidance was raised to £66m–£71m, reflecting improved outlook, removal of Dalco losses, and favorable FX movements.

• Strategic initiatives included the extension of the Tesco partnership, the agreed sale of Dalco, and investments in capacity expansion in Poland, Canada, and Saudi Arabia.

• The company disposed of its vegetarian and vegan business, Dalco, to focus on core strengths in meat and fresh prepared foods.

• Expansion projects are underway in Poland, Canada, and Saudi Arabia, with new facilities expected to drive future growth.

Financial highlights

• Revenue from continuing operations rose to £2,289.1m (up 15.3% year-over-year, 11.5% constant currency); volume up 2.1%.

• Adjusted operating profit was £45.8m (down 3.4% year-over-year, 6.6% constant currency), with margin at 2% versus 2.4% last year.

• Adjusted basic EPS was 25.7p, and net debt improved to £194.4m.

• Adjusted free cash flow improved to £10.4m from an outflow of £30.8m in H1 2025.

• Exceptional costs included £7m for Foppen, £3.2m for restructuring, £4.6m for transformation, and a £16.7m non-cash Dalco impairment.

Outlook and guidance

• Full year adjusted PBT guidance raised to £66m–£71m, up from £60m–£65m.

• Net bank debt expected to increase but remain within the 1–2x EBITDA leverage target.

• Full-year capex expected around £100m, with core capex at or below £50m–£55m; Poland expansion capex deferred to 2027.

• Positive earnings contributions from Canada and Saudi Arabia investments anticipated in 2027.

• Medium-term targets reaffirmed: mid-single digit operating profit growth, 100% cash conversion, and ROCE above 20%.