Hilton Food Group says 2017 trading so far in line

Hilton Food Group said its trading so far in 2017 has been in line with the board's expectations, ahead of issuing its half-year results in July.

Its shares were up 1.95% to 759.5p at 14:01 BST.

The specialist meat-packing business said it had continued to grow by developing the business in existing markets and also through geographic diversification.

"In Western Europe we have made good progress in a number of our markets. In the UK, turnover has continued to grow relative to the same period last year, reflecting higher raw material pricing and some trading up," it said.

"Both the Irish and Swedish businesses have shown encouraging top line growth in the first quarter."

Although Hilton had experienced a slower start in Holland, there were positive signals going forward. In Denmark, turnover was more stable.

"As expected, in Central Europe, where Hilton supplies customers in seven countries, the first quarter has been more challenging, as we implement a number of changes including the expansion of the product range," the company said.

"In Australia, we have seen double-digit volume growth in the joint venture covering Bunbury and Victoria sites. The development work in relation to the Queensland site has continued in line with plan, with a site having been identified for the construction of the plant and planning permission having been lodged."

Hilton said the new business in Portugal was already seeing improvements in consumer and customer KPIs, with much of the production line redevelopment work now complete, and with logistics automation scheduled as the next phase.

"The Group's financial position remains strong, underpinned by good operating cash flows."