Hilton Food Group’s turnaround has gathered steam, as 2.1% volume growth and the sale of Dalco helped improve profits.
A “good overall trading performance” in meat and fresh prepared food helped Hilton to post a smaller-than-expected drop in profits in the first half, while the exclusion of Dalco as assets held for sale allowed Hilton to upgrade its full-year profit guidance by £6m.
The group agreed the sale of its Dutch vegan private label business Dalco in July.
Revenues from continuing operations climbed 11.5% to £2.3bn on a constant currency basis in the 26 weeks to 28 June 2026, as volume growth of 2.1% was supplemented by significant inflation-linked price increases.
Adjusted operating profit fell 6.6% CC to £45.8m, largely reflecting challenges in Hilton’s Foppen seafood business, though the fall was not as bad as expected. Core meat and fresh prepared food delivered a profit in the period, with around 5% growth in adjusted profit before tax.
The troubles at Foppen – with shipments shut out of the US for over a year over regulatory challenges – cost the business £21m in exceptional items in the first half alone.
Hilton said it was “assessing all options” for the future of the Foppen business.
CEO Mark Allen, who was taken on as a steady pair of hands to replace the ousted Steve Murrells in March 2026, said the half-year had been “encouraging”.
“Having set out the conclusions of our strategic review earlier this year, we continue to innovate and deliver for our customers,” he said.
“We delivered good overall trading performance in meat and fresh prepared food, and we continue to drive opportunities to maximise performance and growth from our core operations. While performance in Foppen has been disappointing, we are beginning to see the positive impact of our improvement plans at Seachill in the UK. The agreed sale of Dalco is a step towards simplifying our portfolio.”
Additional revenue streams will soon be added to the business with the launches of its purpose-built facility for its Canadian Walmart partnership in January 2027 and its joint venture with the Saudi National Agriculture Development Company in Q4 2026.
House broker Shore Capital analyst Clive Black called the first half results a “solid update”.
”Hilton has stabilised after a challenging 2025, focusing attention on the execution of the overall plan, noting good progress in the meat and prepared food core,” he said.
“Whilst fish needs to be managed, we do not expect Foppen to be a long-term drag.”
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