Hilton Food Group plc

For 2025, adjusted profit before tax was GBP 73.2 million, down around 3% year on year; adjusted earnings per share was 56p, down 7.4%; operating profit margin was 2.3% versus 2.6% last year. From continuing operations, profit before tax was GBP 69 million, down 1%, and constant-currency operating profit fell 4.4%. Revenue rose 11.9% on a constant-currency basis, while volumes from continuing operations were up 0.2%. Full-year dividend per share increased 1.4% to 35p. Net bank debt was GBP 126.7 million, or 0.9x net debt-to-EBITDA, and group ROCE was 20.1% in 2025. Looking ahead, management reiterated 2026 adjusted PBT guidance of GBP 60 million to GBP 65 million, with net debt expected to increase, core CapEx of GBP 50 million to GBP 55 million, and total CapEx elevated as Canada is completed and Poland spending begins.

Mark Allen emphasized resilience in the core meat business and said the company is repositioning around what it does best: red meat and fresh prepared foods. He framed the strategy as disciplined rather than expansive for its own sake, with limited investment in underperforming seafood and meat-alternative businesses until they improve. His tone was confident but cautious, especially around inflation, consumer demand, and geopolitical uncertainty, and he repeatedly stressed that the 2026 guidance already reflects those risks.

Matthew Osborne walked through a year of inflation-driven revenue growth, with volumes up only 0.2% while revenue rose 11.9% and margin slipped to 2.3%. He highlighted lower tax allowances pushing the tax rate to 30%, a 7.4% drop in adjusted EPS to 56p, and solid balance-sheet metrics including GBP 126.7 million of net bank debt and 0.9x net debt-to-EBITDA. He also pointed to GBP 55 million spent on Canada to date, core net CapEx of GBP 46.5 million, GBP 18.9 million of exceptional cash outflows, and GBP 31.5 million returned to shareholders; for 2026 he expects net debt to rise, core CapEx of GBP 50 million to GBP 55 million, and continued elevated investment in Canada and Poland.

Analysts focused on whether 2026 guidance adequately reflects inflation, freight disruption, and consumer elasticity. Management said the January outlook already incorporated its view on inflation and consumer behavior, and noted that many contracts are cost-plus, which helps pass through some pressures, while also saying it is watching Middle East-related freight risks closely. Questions also pushed on the strategic review: management said the non-core businesses are now run separately with dedicated teams, investment there will be very selective, and the goal is to create optionality rather than announce a sale.