Hilton Food flags inflation, Middle East risks while keeping 2025 outlook unchanged
Meat and prepared foods business continues to support trading performance
UK – Britain-based Hilton Food Group said on Tuesday that it remains wary of rising costs and possible disruption linked to tensions in the Middle East, although it left its full-year profit expectations unchanged after continued demand in its meat and convenience food operations.
The food manufacturer and supply chain company, which works directly with supermarket chains across Europe and the Asia-Pacific region, said trading in its core meat and prepared meals division had remained steady despite persistent inflation across several commodity categories.
The group processes and packages beef, pork, lamb, poultry and seafood products for retailers, while also producing ready meals, barbecue kits and plant-based alternatives that are sold under supermarket private labels rather than its own brand name.
Meanwhile, Hilton operates more than 24 production facilities internationally and handles over 517,000 tonnes of food products annually across categories including fresh meat, fish and convenience meals supplied to grocery retailers.
Revenue Growth Driven by Food Price Increases
The company reported that currency-adjusted revenue for 2025 climbed 11.9% to £4.21 billion, equivalent to about US$5.61 billion, with higher selling prices linked to inflation in beef and fish markets contributing to the increase.
However, adjusted pre-tax profit declined 2.8% year-on-year to £73.2 million, or roughly US$97.5 million, as elevated raw material costs and weaker demand in its seafood businesses affected earnings performance.
Hilton said pressure in its Seachill seafood division and Foppen smoked salmon operations weighed on profitability during the latest reporting period, while operating margin narrowed to 2.3% from 2.6% a year earlier.
Debt Levels Expected to Rise
At the same time, net bank debt stood at £126.7 million, equivalent to approximately US$168.8 million, according to the company’s latest annual figures, with borrowing expected to increase further as expansion projects continue.
The company’s operations also include primary meat processing, deboning and value-added packaging for products such as burgers, sausages, steaks, mince and roasting joints supplied to supermarket retailers in several international markets.
Although Hilton maintained its outlook for the year, the company said inflationary pressures and geopolitical uncertainty remain risks for the wider food supply chain and consumer markets.
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