Half Year 2024 Hilton Food Group PLC Earnings Call Transcript
Key Points
- Hilton Food Group PLC (FRA:FAG) reported strong volume growth of 3.2% and revenue of GBP1.94 billion, up 1% on a constant currency basis for the first half of 2024.
- Operating profit increased by 23% to GBP46.9 million, driven by strong performance in the UK seafood business and core meat categories.
- The company announced an interim dividend of 9.6p, an increase of 6.7% on the prior year, reflecting its progressive dividend policy.
- Hilton Food Group PLC (FRA:FAG) has secured a new global partnership deal with McDonald's for supplier auditing and product specification management, showcasing the value of its Foods Connected technology.
- The company has made significant progress in sustainability, saving 390 tonnes of plastic and eliminating 4 million cardboard cartons through packaging improvements.
- The vegan and vegetarian market remains challenging, with the company facing structural decline in this sector.
- Revenue in the APAC region was down 6.7% compared to the first half of last year, primarily due to significant deflation in beef and lamb prices.
- The company anticipates short-term dilution in return on capital employed (ROCE) as it invests in developing Hilton Foods Canada.
- The seafood business, while improving, still faces high inflation in whitefish prices, which could impact future volume growth.
- The company's balance sheet shows GBP137 million of net debt, although this is a slight reduction from the year-end position.
Good morning, and welcome to Hilton Food's interim results for 2024. I'm Steve Murrells, the Group Chief Executive, and I'm presenting today with our Chief Financial Officer, Matt Osborne. This morning, we will share our interim performance compared to last year, review the progress that we're making in the business versus our strategic priorities and lay out the strength of the platform that we have for our long-term growth.
Turning to the numbers, we've had a strong first half to the year, delivering growth across all three areas of volume, revenue, and profit on a constant currency basis. At our full year results, I stood here with a message to focus on driving our core volumes and continuing the progress in our seafood business.
I believe these results represent another step forward in delivering on what we said. Our balance sheet continues to strengthen, and I am pleased to announce an interim dividend of 9.6p an increase of 6.7% on the prior year and in line with our progressive dividend
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