UK’s Hilton Food faces profit challenges amid facility delays, inflation
British meat and seafood supplier Hilton Food reports profit growth pressures and delays at its Greek smoked salmon plant.
UK – British meat and seafood supplier Hilton Food (HFG.L) recently warned investors that profit growth will be difficult in the coming year after announcing it cannot restart its Greek smoked salmon facility in 2025.
The company cited ongoing inflation and higher costs for raw ingredients as factors reducing demand for seafood, particularly white fish, which is essential for traditional British fish and chips.
Shares of Hilton Food, based in Cambridgeshire, dropped more than 25 percent to 480 pence, marking their lowest level since December 2022.
Market analyst Mark Crouch from eToro said inflation is eroding profits while dampening demand for non-essential food items.
Britain continues to experience the highest inflation rate among advanced economies, contributing to a sharp rise in food prices and prompting consumers to choose cheaper alternatives.
Hilton Food explained that a U.S. government shutdown has prevented it from obtaining the necessary Food and Drug Administration approvals to resume production at its Foppen smoked salmon facility in Greece.
In September, the company had temporarily moved production to the Netherlands, which increased operating costs and reduced production efficiency.
The company now confirmed that production at the Greek facility will not resume in time for the Christmas season, a critical period for its seasonal product range.
As a result, Hilton Food projected an adjusted pre-tax profit for fiscal 2025 between 72 million pounds and 75 million pounds (US$96.6 million to US$100.6 million), roughly 3 percent below analysts’ current market expectations of 75.6 million pounds (US$101 million).
The delayed restart of the Greek plant coincides with heightened seasonal demand, creating a financial strain on the company’s operations during one of its busiest periods.
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