UK-based meat packer Hilton Food Group said this morning (19 July) that it has been able to grow first-half revenues, despite challenging conditions in its key markets.
Hilton's operations have benefited from its geographical diversity, with growth in western and central Europe offsetting a continued slow-down in Sweden and product-mix pressure in the UK.
The firm conceded it is feeling the negative impact of higher production costs and currency exchange, but insisted it is "well-placed" to deliver shareholder value in the remainder of the year.
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HILTON FOOD GROUP PLC
TRADING STATEMENT FOR THE 28 WEEKS ENDED 15th JULY 2012
Hilton Food Group plc ("Hilton" or "Company"), Europe's leading specialist retail meat packing business, is today providing an update on trading for the 28 weeks ended 15th July 2012.
Against a background of challenging market conditions and constrained consumer demand, leading to downtrading in some of our markets, the Company has continued to deliver turnover growth. Meanwhile, as anticipated, raw material prices throughout the period have remained high, while the weakening of the Euro, Swedish Krona and Polish Zloty has resulted in a negative foreign currency translation effect when compared to the same period last year.
Hilton has seen turnover growth in Western Europe, primarily driven by growth in Denmark, which started production at the end of the first quarter 2011 and where the store order picking facility has started up successfully. The Swedish business has performed well, albeit that growth has slowed in line with the broader economic conditions. Our UK business has grown, but consumer demand remains constrained and the product mix has been affected by the continuing high prices of meat. The Dutch business has delivered a steady performance. The Company has also continued to grow the business in Central Europe.
The Company's balance sheet remains strong, leaving us financially well placed for future expansion.
Whilst the trading environment for the rest of 2012 is likely to remain challenging, Hilton is a geographically diversified company that will be able to take advantage of subsequent economic recovery. As opportunities emerge, Hilton is well placed to deliver shareholder value, building on existing customer relationships and also by entering new markets.
The Group intends to publish its half year results on Tuesday 11th September 2012.
