Hilton Food Group has adjusted its full-year profit guidance, expressing a “difficult” forecast for profit growth in 2026.
In a recent filing with the London Stock Exchange on 11 November, the UK-based meat and seafood private-label supplier projected an adjusted pre-tax profit ranging from £72m ($94.6m) to £75m for the financial year ending 28 December.
When Hilton Food announced its results for the 26-week period ending 29 June, it forecasted a profit range of £76.8m to £81m based on estimates made as of 2 September.
Today, Hilton Food highlighted challenges in its UK seafood sector and its Foppen salmon operations in the Netherlands.
“Given the emerging impact on demand from ongoing inflationary pressures and the continued disruption at Foppen, the board has become more cautious on the trading outlook for 2026 and as such expects profit progression in the next financial year to be difficult,” the company stated in its filing.
Furthermore, the UK seafood operations continue to experience a decline, attributed to softer white-fish demand driven by high raw material inflation and cautious consumer spending.
Hilton Food indicated that the Foppen business has undergone operational disruptions linked to regulatory shipping restrictions to the US. Consequently, production at a facility in Greece has halted, delayed due to the US government shutdown, and is not anticipated to resume operations until 2025.
The company has faced seafood-related challenges previously. In 2023, the private-label protein supplier noted it was taking measures to address ongoing challenges in the UK seafood market.
“We are collaborating with our customers to recover inflation, reduce costs, and optimize our production ranges while leveraging benefits from our investments in industry-leading automation and other initiatives,” the company expressed at the time.
Subsequently, a year later, Hilton Food announced job cuts at its Grimsby seafood operations in the UK due to the introduction of new filleting equipment.
In relation to other product areas, Hilton Food reported that volumes in red meat and convenience foods remain “solid,” with convenience items particularly performing “well.”
However, “price inflation” continues to adversely impact underlying demand, according to the company.
Hilton anticipates net debt at year-end to be “marginally higher” than the previous year. The company secured £71m in net cash from disposals during the quarter and is investing in new facilities in Canada. These cash inflows include the sale of the UK foodservice supplier Fairfax Meadow to Sysco for £54m.
The group also foresees a “partial inventory unwind” over the Christmas period. “Although underlying demand is subdued, the normal seasonal uplift in Q4 is expected to support overall performance in the near term,” the company added.
Hilton Food indicated that a comprehensive review of operations and its portfolio has “reached an advanced stage,” with findings expected to be shared in the full-year trading update in January.
Moreover, the development of new operations in Canada and a joint venture in Saudi Arabia remains “on schedule.” In June, the company confirmed plans for its inaugural North American processing and distribution site in Brantford, Ontario. This facility will supply beef, pork, lamb, and seafood to distribution centers in Mississauga, Cornwall, and Moncton.
Earlier this year, the group formed a joint venture with The National Agricultural Development Company (NADEC) in Saudi Arabia. This endeavor will see Hilton Food developing facilities while NADEC contributes by supplying the venture and incorporating red meat products into its distribution network.
