As Hilton Food Group released a trading update for the 28 weeks up to July 6th, new CEO Steve Murrells explained that this strategic decision aims to prepare the company for future demand and ensure its competitive position in the sector.
Murrells stated, “We are consolidating our factories to bring efficiencies into our operations by 2024. This is a small but important segment of our business, and we have identified the need to adapt to market changes driven by price, value, and taste expectations of our customers.”
“Hyperinflation” in salmon
Murrells highlighted the strong financial results achieved by Hilton Food Group after a challenging 2023 marked by cost increases in the salmon category. The company’s adjusted operating profit increased by 1.4% to £41.8m ($52.1m) based on group revenue of £2.1bn.
Regarding the recovery in the seafood business, Murrells said, “We have successfully resolved the inflationary challenges in the salmon sector and made improvements through automation and product range streamlining. By focusing on a tighter catalogue of products, along with a strong management team and efficient operations, we are confident in achieving profitability in the seafood segment by the end of the year.”
Murrells also mentioned that although interest expenses had impacted the company’s bottom line with an adjusted profit before tax decline of 22.2% to £26.8m, Hilton Food Group has already agreed on inflation conversations and negotiations for 2023 across various categories, including fish and red meat.
In terms of future prospects, Murrells emphasized the opportunity to expand the company’s diverse range of protein products across its international footprint by collaborating with existing partners.
