Hilton Food Group PLC reported adjusted profit before tax of £32.8 million for the first half of its 2026 fiscal year, exceeding market expectations as core meat operations offset pressure in seafood units. Reported operating profit totaled £45.8 million, a 3.4% decline year-over-year, or 6.6% on a constant-currency basis, with the operating margin narrowing to 2.0% from 2.4% in the prior-year period.
Adjusted earnings per share reached £0.257, ahead of consensus, while the board declared an unchanged interim dividend of £0.101 per share under its progressive dividend policy. Revenue grew 11.5% on a constant-currency basis to $7.26 billion on a last-12-month basis, with volumes in continuing operations up 2.1%. Gross profit margin stood at 60.4%.
Net bank debt fell to just under £200 million, reducing leverage to 1.4 times, within the company’s target range of 1 to 2 times. Core capital expenditure in the first half amounted to £15.4 million, with full-year guidance maintained at around £100 million. The group’s shares rose 14.82% to $725.80, approaching the 52-week high of $727.00.
Hilton upgraded its full-year 2026 profit before tax guidance for continuing operations to £66-71 million, from a prior range of £60-65 million, citing the removal of expected losses from the Dalco vegetarian and vegan business and favorable foreign exchange movements. The company also highlighted continued operational improvements in its core red meat operations, particularly in the East region, where volumes rose across Australia, New Zealand, Central Europe and Saudi Arabia.
The East region delivered a 26% increase in fresh prepared food volumes in Central Europe, while Australian beef prices drove a 15.3% revenue rise in the region. In contrast, the West region—comprising the U.K., Ireland, Netherlands, Sweden, Denmark, Portugal and Canada—saw mixed performance, with slight volume growth offset by trading down in beef categories in key markets. Canada’s new facility remains on track for a January 2027 launch, with total investment now at £80 million and an additional £25 million expected in the second half.
Saudi Arabia’s joint venture is slated to commence operations in the fourth quarter of 2026, with £3.6 million invested in the first half. Expansion plans in Poland have been expanded beyond the original £30 million estimate, with scoping work expected to conclude by year-end and capital expenditure to begin in 2027.
Exceptional items totaled £31.5 million in the first half, including £7 million related to Foppen, £3.2 million in restructuring costs, £4.6 million in transformation expenses and a £16.7 million non-cash impairment of Dalco. Foppen, the group’s seafood unit, continues to face regulatory uncertainty in the U.S. regarding Greek exports, with CEO Mark Ramprakash noting the FDA is under no obligation to respond on a set timeline, leaving the business in a state of limbo.
