Hilton Food Group (LON:HFG – Get Free Report) issued its earnings results on Thursday. The company reported GBX 25.70 earnings per share for the quarter, Digital Look Earnings reports. Hilton Food Group had a return on equity of 14.17% and a net margin of 1.14%.
Here are the key takeaways from Hilton Food Group’s conference call:
- Full-year adjusted PBT guidance increased to £66 million–£71 million, up from £60 million–£65 million, supported by stronger core businesses, favorable foreign exchange and the removal of Dalco losses from continuing operations.
- Core meat and fresh prepared food businesses performed well, with volumes up 2.1% and constant-currency revenue up 11.5%; Central Europe was a standout, as fresh prepared food volumes rose 26% and the company plans a potentially larger capacity expansion in Poland.
- Foppen remains a significant drag, with a low-single-digit operating loss in the first half, £7 million of exceptional costs and continued uncertainty over FDA approval to restart U.S. exports from Greece. Management said all future options for the business are under review and expects the situation to be addressed during 2027.
- The company is simplifying its portfolio through the planned £5.4 million sale of Dalco, while Seachill’s improvement plan—including lower agency staffing, better fish yields and sourcing changes—is beginning to deliver early benefits that management expects to become more visible in the second half.
- Hilton remains on track to launch its Canada facility in January 2027 and Saudi Arabia operations in late fourth quarter 2026, but Canada’s total investment has increased; approximately £25 million of additional project spending is expected in the second half, with around £20 million for the later bacon expansion.
Hilton Food Group Stock Up 12.2%
Hilton Food Group stock traded up GBX 77 during mid-day trading on Thursday, reaching GBX 708. 1,028,189 shares of the company were exchanged, compared to its average volume of 743,229. Hilton Food Group has a 12-month low of GBX 447.89 and a 12-month high of GBX 738. The business has a fifty day moving average of GBX 575.20 and a 200 day moving average of GBX 540.49. The firm has a market cap of £636.89 million, a P/E ratio of 8.11, a PEG ratio of 17.31 and a beta of 0.75. The company has a debt-to-equity ratio of 129.90, a quick ratio of 0.88 and a current ratio of 1.10.
Key Hilton Food Group News
- Positive Sentiment: First-half revenue rose to approximately £2.29 billion, supported by higher volumes and inflation-related pricing. Management also upgraded its full-year adjusted profit forecast, indicating improved confidence in the recovery. Hilton Food H1 Revenue Rises on Higher Volumes, Inflation; Lifts Annual Pre-Tax Income Outlook
- Positive Sentiment: The earnings update appears to have revived investor optimism that Hilton Food’s operational and earnings recovery is gaining traction. Hilton Food Sparks Investor Hopes of Recovery
- Positive Sentiment: Shore Capital reaffirmed its “house stock” rating, providing additional support for the investment case. The company also reported quarterly EPS of 25.70 pence, with a 14.17% return on equity. Hilton Food Raises Full-Year Adjusted Profit Guidance After Interim Results
- Neutral Sentiment: The shares are trading well above their 50-day and 200-day moving averages and close to their 52-week high. This reflects strong momentum, but may also increase the scope for profit-taking if future results fail to meet the upgraded outlook.
- Negative Sentiment: Despite the improved outlook, reported profitability remains thin, with a net margin of 1.14%. Hilton Food also carries relatively high leverage, with a debt-to-equity ratio of approximately 130%, leaving earnings sensitive to costs, interest rates and execution risks.
Analyst Ratings Changes
Several analysts have issued reports on the company. Shore Capital Group reissued a “house stock” rating on shares of Hilton Food Group in a report on Thursday. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a GBX 815 price target on shares of Hilton Food Group in a report on Monday, August 3rd. Two analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of GBX 703.75.
Get Our Latest Research Report on Hilton Food Group
About Hilton Food Group
Hilton Food Group plc is a leading international food and supply chain services partner. We partner with leading retailers, brands and food service partners across the world.
We offer a unique multi-category proposition of outstanding protein products including meat, seafood, vegan and vegetarian, and easier meals. We also offer a range of supply chain service expertise and solutions through our investment in innovative, leading technology such as Foods Connected, Agito Group and Cellular Agriculture Ltd.
We are a business of over 7,000 employees, operating from 24 technologically advanced food processing, packing and logistics facilities across 19 markets in Europe, Asia Pacific and North America.
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