Hilton Food Group Sees Revenue, Volume Soar Due To Increased At-Home Consumption
Hilton Food Group saw its revenue grow by two fifths (+38.6%) in the 28 weeks to 12 July, boosted by increased at-home consumption due to COVID-19.
The business posted revenue of £1.26 billion in the period, up from £912 million a year earlier, while adjusted operating profit was up 17.9% to £31.5 million.
Volumes were up 22.6% during the period, it said.
In Europe, Hilton Food Group saw sales of £1.04 billion, while volumes increased by 10.2%, largely driven by the group's increased participation with Tesco in the UK, as well as increased home consumption.
The business also saw growth in its Dalco joint venture vegetarian business, however its foodservice operation has been 'adversely affected', it added.
Hilton plans to open a new facility in production Belgium in October of this year, which will see it pack all red meat requirements for Delhaize.
In Australasia, the group saw volumes increase by 100.6%, boosted by the opening of a new production facility in Brisbane.
The opening of a new meat and fish facility in New Zealand, however, has been delayed as a result of COVID-19, and is now expected to open in the third quarter of 2021.
'Commitment And Resilience'
"I am extremely proud of the commitment and resilience shown by the entire Hilton team to step up and adapt quickly to the challenges caused by COVID-19 in order to safeguard our people, keep our facilities open and support our customers," commented Robert Watson, executive chairman. "This response underpinned a strong performance with volume and profit growth demonstrating the robustness and sustainability of our business.
"Hilton continues to invest in new facilities in Belgium and New Zealand which, together with the further development of our fish and vegetarian categories will ensure future growth.
"As with all businesses, there remain uncertainties concerning the full impact of COVID-19 including potential recessionary risks, but our wide geographical spread and the fact we serve the food retail sector make us believe we are well placed to meet any future challenges."
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.