Hilton Food CEO Steve Murrells to step down
Executive leadership shift announced as company navigates profit pressures and inflation.
UK – Britain’s Hilton Food (HFG.L) said on Tuesday that Chief Executive Officer Steve Murrells will step down, with Mark Allen set to move into an executive chair role while the company explores long-term CEO succession.
The announcement comes as Hilton Food grapples with operational difficulties in its seafood segment and ongoing inflationary pressures that contributed to a profit warning earlier this month.
The company confirmed that while growth is expected to be difficult, its financial position remains stable and annual performance is likely to match prior projections.
Murrells, who has led the business for over two years, will remain in a transitional role until the end of December to support the handover to Allen, whose experience in the food and consumer goods sectors is expected to guide the company through this period.
A few weeks ago, Hilton Food warned investors that profit growth would be constrained in the upcoming year following the continued closure of its Greek smoked salmon facility.
The company cited rising ingredient costs and inflation as factors weakening demand for seafood, particularly white fish, a key component of the British fish-and-chips market.
Hilton Food’s shares fell more than 25 percent to 480 pence (approximately US$5.90), reaching their lowest level since December 2022, representing investor concerns about profitability and operational hurdles.
Market analyst Mark Crouch of eToro said the combined effect of inflation and reduced consumer demand for non-essential food products is weighing on the company’s earnings.
The high inflation rate in the UK, the highest among developed economies, has pushed food prices up sharply and led consumers to seek lower-cost alternatives.
Hilton Food added that delays caused by a U.S. government shutdown have blocked the Food and Drug Administration from approving production at its Foppen smoked salmon facility in Greece.
In September, the company temporarily relocated production to the Netherlands, a move that increased costs and lowered operational efficiency, further straining the seafood division.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
