Turnover rises at Hilton Food Group
In a trading update for the 28 weeks ending 15 July 2012 the company said that despite “challenging” market conditions and tight consumer demand, which has lead to a downtrading in some markets, it had continued to see growth in turnover.
A big contributor to the results, said Hilton, was the growth in Western Europe, which was primarily driven by growth in Denmark when production started in 2011.
Positive results were also seen for business in Sweden, however, Hilton said growth had slowed in-line with the “greater economic conditions.” Hilton’s UK market had also experienced growth, but the company explained that consumer demand had remained constrained and the product mix was affected by the continuing high prices of meat.
Hilton explained that a focus on growing business in Central Europe was a priority and the company also expected to see a challenging trading environment for the rest of 2012. It plans to take advantage of the economic recovery to boost profit.
A 2012 forecast gave predictions of an estimated impact of 5% on profits from currencies, which had risen from a previous assumption of 4% due to the continued weakness of the Euro. Growth of 7.7% has been predicted due to Hilton trimming back its full-year earning per share forecast for 2012, which implies good growth for H2.
However, the company said start-up costs from the Danish factory in could affect profits in the second half, which has reduced the profit before tax forecast by £0.5m to £26.4m.
The company intends to publish its half year results on Tuesday, 11 September, 2012.