Hilltop Honey’s profits have fallen despite steady revenue growth as it swallowed “considerable” input cost pressures.
The Welsh group’s turnover grew 3% to £45.4m in the year to 31 August 2025, according to fresh accounts filed at Companies House.
But margins were hit by increasing inflation and employment costs including increased shipping and packaging costs. Gross profit fell 4% to £9.3m, and operating profit fell 35% to £2.5m.
The blow to profits came as Hilltop swallowed costs without passing them on to customers, CEO Tom Delaney told The Grocer.
In response to last year’s cost pressures, the group has also invested in automation and additional capacity, and has unveiled “considerable growth plans” as it diversifies from honey into other categories including condiments, pie fillings and peanut butter.
“We plan well ahead of time,” he added.
Input costs are set to continue to rise for the group, however.
“Inflationary pressures in the market, despite our best efforts and planning, continue to grow into this year,” Delaney said. “We are seeing the true effect of governmental intervention on the living wage, National Insurance as well as EPR and other incentives that have driven our costs upwards.
“The challenge on the wider geopolitical stage has only exacerbated these issues and are causing us to constantly evolve our position.”
Despite rising costs, Hilltop is on track to beat its revenue targets. A rebrand from Hilltop Honey to Hilltop Food Group has come alongside the shift into new categories and growing export sales.
Sales into Europe and Ireland grew swiftly from just £574k to £1.4m, with US sales under the Scott’s brand growing 13% to £1.6m.
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