Hilton Food Group, the London-listed supplier of private-label products, is set to witness the departure of its long-standing chairman, Robert Watson. Watson, who holds an OBE, will be succeeded by Mark Allen, a seasoned executive in the consumer goods sector, effective January 1.
Watson, who joined Hilton Foods as CEO in 2002 and became executive chairman in 2018, transitioned to a non-executive role in January 2021. As he prepares to step down, he reaffirmed his long-term commitment to the company, stating, “He will remain a long-term committed investor in Hilton Foods.” In a statement regarding his departure, Watson expressed, “After more than 20 years at Hilton Foods, the time is right to continue our process of evolving our leadership. I am delighted that Mark is first joining the board and will then succeed me as chair next year.” He concluded, “I am proud of what we have achieved at Hilton Foods, and I will step down in the new year with the business in a stronger position than ever before.”
Mark Allen currently serves as chairman of AG Barr, a soft drinks manufacturer based in the UK and listed in London, a role he has held since early 2022. Previously, he was CEO of Dairy Crest from 2007 to 2019 and has contributed his expertise as a non-executive director for various companies, including Halo Foods, Warburtons, and Dairy UK. He was similarly honored with an OBE in recognition of his contributions to the UK’s dairy sector in the 2019 New Year’s Honours list.
Allen expressed his enthusiasm for joining Hilton Foods, stating, “I am delighted to be joining a fantastic business, with great people and an excellent leadership team. This is a very exciting time for Hilton Foods, and I look forward to continuing the excellent progress made so far through Robert’s leadership.”
In the company’s first-half results released on September 4, Hilton Foods reported a revenue of £1.94 billion ($2.5 billion), reflecting a statutory decline of 8.4 percent but an increase of 1.1 percent on a like-for-like basis. The trading volumes for the 26 weeks ending June 30 showed an uptick of 3.2 percent compared to the previous year’s 28-week reporting period.
The adjusted operating profit reached £46.9 million, a 12.2 percent rise on a reported basis, and a considerable increase of 42.3 percent and 23.2 percent in statutory and like-for-like terms, respectively. The statutory profit before tax also saw substantial growth, standing at £25.4 million compared to £11.3 million, with basic earnings per share rising to 18.8p from 7.6p.
Steve Murrells CBE, who took over as CEO last summer, remarked, “These results represent another step forward as Hilton Foods further improves business performance and profitability. Looking ahead, Hilton Foods possesses all the essential attributes. Our robust financial framework, diverse multi-category offerings, and market-leading technology bolster my confidence in the group’s capacity for further international growth.”
Regionally, Hilton Foods reported that the UK and Ireland generated £709.6 million in revenue, marking a 1.2 percent increase, while adjusted operating profit rose to £21.1 million from £12.8 million. However, the rest of Europe experienced a decline, recording £519.7 million in revenue—down 6.1 percent—and a corresponding operating profit drop of 5.8 percent to £19.2 million. Furthermore, the Asia-Pacific region faced challenges, with revenue plunging 17.7 percent to £714.5 million and adjusted operating profit decreasing by 12 percent to £14.5 million.
As Hilton Foods navigates these transitions and challenges, the food and beverage industry trends and insights into food and drink business strategies will continue to shape its trajectory in the market.
