Hilton Food Cuts Full-year Profit Forecast, Warns Of “difficult” 2026

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Hilton Food Group has lowered its full-year profit guidance and pointed to a “difficult” outlook for profit progression successful 2026.

In a London Stock Exchange filing coming (11 November), nan UK-based nutrient and seafood private-label supplier projected an adjusted pre-tax profit of £72m ($94.6m) to £75m for nan financial twelvemonth ending 28 December.

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When nan institution announced its results for nan 26 weeks to 29 June, Hilton Food said nan metric would present a profit of £76.8m to £81m based connected estimates arsenic of 2 September.

Today, Hilton Food flagged challenges successful its UK seafood business and its Foppen salmon operations successful nan Netherlands.

Hilton Food said nan Foppen business successful Europe has faced “operational disruption” linked to regulatory restrictions connected shipping to nan US. As a result, accumulation astatine a installation successful Greece has stopped, delayed by nan US authorities shutdown, and is not expected to restart operations successful 2025.

The institution has faced challenges successful seafood successful nan past.

In 2023, nan private-label focused macromolecule business said it was taking steps to tackle nan “challenges” successful UK seafood.

“We are moving successful business pinch our customers to retrieve inflation, trim costs and optimise nan ranges we produce, arsenic good arsenic leveraging nan benefits which will travel done our finance successful industry-leading automation and different initiatives,” nan institution said astatine nan time.

A twelvemonth later, Hilton Food announced redundancies astatine its Grimsby seafood operations successful nan UK arsenic it introduced caller filleting equipment.

In different class areas, Hilton Food said coming that volumes successful reddish nutrient and convenience stay “solid”, pinch convenience particularly performing “well”.

However, “price inflation” is weighing connected underlying demand, it said.

Hilton expects nett indebtedness astatine year-end to beryllium “marginally higher” than astatine nan extremity of nan anterior year.

The institution secured £71m successful nett rate from disposals during nan 4th and is investing successful caller Canadian facilities. The rate receipts see the waste of UK foodservice supplier Fairfax Meadow to Sysco in a £54m deal.

The group besides expects a “partial inventory unwind” complete nan Christmas period.

“Although underlying request is subdued, nan normal seasonal uplift successful Q4 is expected to support wide capacity successful nan adjacent term,” nan institution said.

Hilton Food added coming that a business reappraisal of operations and its portfolio has “reached an precocious stage”. Its conclusions will beryllium presented pinch nan afloat twelvemonth trading update successful January.

The group said nan improvement of caller Canadian operations and a associated task successful Saudi Arabia stay “on schedule”.

In June, nan company confirmed plans for its first North American processing and distribution tract successful Brantford, Ontario. The works will proviso beef, pork, lamb and seafood to distribution centres successful Mississauga, Cornwall and Moncton.

Earlier this year, nan group formed a associated venture with The National Agricultural Development Company (NADEC) successful Saudi Arabia.  

Hilton Food planned to create accommodation successful Saudi Arabia, while NADEC will proviso nan task and adhd reddish nutrient products to its distribution network.