Hilton Food Group plc

For 2025, adjusted profit before tax was GBP 73.2 million, down around 3% year on year, and adjusted EPS was 56p, down 7.4%. On a constant-currency basis, revenue rose 11.9%, volumes from continuing operations were up 0.2%, and operating margin was 2.3% versus 2.6% last year. Profit before tax from continuing operations was GBP 69 million, down 1%. Full-year dividend per share rose 1.4% to 35p, and net bank debt was GBP 126.7 million, or 0.9x net debt-to-EBITDA. Management reiterated 2026 adjusted PBT guidance of GBP 60 million to GBP 65 million, unchanged from January, with total CapEx expected to stay elevated as Canada is completed and Poland spend begins.

Mark Allen’s message was that the business is being repositioned around a clearer, more selective growth strategy built from a resilient core. He said Hilton Foods wants to be the international red meat partner of choice, with fresh prepared foods as a targeted adjacency in selected geographies, and that capital will be deployed only where returns are attractive. His tone was constructive but measured: confident in the core, cautious on seafood and market inflation, and explicit that the business will focus on reducing volatility and improving long-term value creation.

Matthew Osborne highlighted the key financial drivers: revenue growth was mostly inflation-driven, core meat and fresh prepared food operating profit was slightly up, but seafood/vegetarian/vegan profit fell materially. He pointed to specific one-offs and cash items, including GBP 9.2 million of cash costs for Foppen relocation, an GBP 18.4 million inventory write-off, GBP 9.6 million of restructuring costs, and GBP 66.5 million of disposal gains from Fairfax Meadow and Foods Connected. He also noted net bank debt of GBP 126.7 million, leverage of 0.9x EBITDA, a GBP 450 million revolving credit facility refinanced for at least 5 years, core CapEx of GBP 46.5 million, and 2026 core CapEx expected at GBP 50 million to GBP 55 million.

Analysts focused on whether higher red meat inflation, freight changes, and uncertain consumer demand could pressure 2026 guidance, and management said the January outlook already reflected inflation assumptions and they remain comfortable with GBP 60 million to GBP 65 million PBT. Questions also probed working capital, with management expecting a modest improvement in 2026, though they said they may still buy ahead of inflation or to secure supply. On the strategic review, management said the weak businesses are being run separately for now, there is no decision to sell them, and any long-term capital for those units would depend on short-term turnaround progress and attractive payback; for Foppen, they also flagged ongoing regulatory issues and further exceptional costs this year.