Key facts
- Hilton Food Group has upgraded its profit target following the sale of its vegan arm, Dalco.
- The company now expects pre-tax profits to range between £66m and £71m.
- Dalco was sold in July for £5.4m to plant-based foods business Livekindly.
- Hilton reported a 15% increase in first-half revenue to £2.3bn, but pre-tax profit fell to £7.5m.
- The company is expanding globally with new facilities planned in Canada and Saudi Arabia.
Britain's largest meatpacker, Hilton Food Group, has raised its profit forecast after divesting its loss-making vegan division. The company now anticipates pre-tax profits to fall within the range of £66m to £71m, marking a 10% increase from its previous projection.
The sale of its Dutch vegan and vegetarian manufacturing business, Dalco, for £5.4m in July is a key factor behind the upgraded outlook. Dalco, which employed over 150 staff, produced meat alternative products such as sausages, meatballs, nuggets, and burgers for private label clients.
Hilton had previously acknowledged the underperformance of the Dalco business, which had led to write-downs in earlier financial years. The company stated that the removal of Dalco's losses, along with favourable foreign currency movements, contributed to the profit upgrade. However, Hilton also faced challenges from weaker demand at its Dutch smoked salmon arm, Foppen, and a rise in raw material costs.
For the first half of the year, Hilton reported revenue of £2.3bn, a 15% increase compared to the previous year, while pre-tax profit declined to £7.5m. The company maintained its interim dividend at 10.1p.
Chief executive Mark Allen described the sale of Dalco as a step towards simplifying the company's portfolio, emphasizing that leadership in red meat and customer relationships will drive future growth. Hilton is also pursuing global expansion, with new facilities planned in Canada and Saudi Arabia, expected to contribute to profits from 2027.
In London, Hilton shares surged 8.7% to 686p in early trading on Thursday, extending their year-to-date gain to 38%.