Hilton Food Group (HFG) H2 2024 earnings summary

Executive summary

• Achieved volume growth of 4.4% and revenue growth of 1.9% on a constant currency basis, with operating profit up 11.9% and profit before tax up 17.1% year-over-year.

• Retail meat business outperformed the market across all regions, with strong contributions from premiumization and product innovation.

• Expanded with existing partners and entered new markets, including a joint venture in Saudi Arabia (launching H2 2026) and Hilton Foods Canada (launching early 2027).

• Advanced sustainability initiatives, achieving a 32% reduction in scope 1 and 2 emissions and a 47% reduction in food waste since 2020.

• Maintained a strong balance sheet and increased the full-year dividend by 7.8% to 34.5 pence.

Financial highlights

• Operating profit rose to GBP 104.7 million, with margins increasing from 2.4% to 2.6% year-over-year.

• Adjusted EPS grew by 17.4% to 61 pence; ROCE improved to 21.7%.

• Net bank debt reduced to GBP 131 million, with leverage at 0.9x net debt to EBITDA.

• Capital expenditure reached GBP 73.5 million, reflecting growth investments and site purchases.

• Received GBP 13 million insurance payment related to Belgium fire, totaling GBP 23 million to date.

Outlook and guidance

• Confident in meeting current market expectations, with a secure pipeline of medium-term growth initiatives in Saudi Arabia and Canada.

• Canada and Saudi Arabia expected to contribute to profit from 2027 and 2026 respectively, with long-term growth anticipated.

• Premiumization and innovation expected to continue driving growth, with both entry and upper-tier products performing well.

• 2025 adjusted PBT guidance: £76.8m–£83.3m; core capex guidance for 2025: £60–65m; effective tax rate c.27%.