Hilton Food Group (HFG) H2 2025 earnings summary

Executive summary

• Adjusted profit before tax (PBT) was £73.2m, down 3% year-on-year, reflecting the disposal of Fairfax Meadow and ongoing challenges in seafood and Dalco.

• Revenue grew 11.9% year-on-year on a constant currency basis, driven by inflationary input costs, with volumes stable.

• Core meat operations remained stable and resilient, now accounting for around 90% of revenue, with strategic focus on core meat and fresh prepared foods.

• Major projects in Canada and Saudi Arabia remain on track, with up to £30m planned investment in Poland to expand capacity and expected contributions from 2027.

• Improvement plans are in place for Seachill, Foppen, and Dalco.

Financial highlights

• Adjusted operating profit declined 5.2% to £99.3m; adjusted EPS was £0.56, down 7.4%, impacted by a higher tax rate.

• Dividend per share increased 1.4% to £0.35, reflecting a progressive dividend policy.

• Net debt improved to £126.7m, with net debt-to-EBITDA at 0.9x.

• Capex rose 29.5% to £95.2m, reflecting investment in growth projects.

• Free cash flow was negative at £(26.8)m, impacted by investment in inventory and international expansion.

Outlook and guidance

• 2026 adjusted PBT expected in the range of £60m–£65m, reflecting continued challenges in seafood, vegetarian, and vegan businesses.

• Net debt anticipated to increase in 2026 due to ongoing capital projects.

• 2026 capex expected at ~£100m, with major spend on Canada and Poland projects.

• Medium-term targets include mid-single-digit operating profit growth, cash flow conversion around 100%, and group ROCE of at least 20%.