Hilton Food Group warns on FY profits

Hilton Food Group warned on full-year profits on Thursday as it posted a drop in interim pre-tax profit, having taken a hit from higher costs.

In the 28 weeks to 17 July, adjusted pre-tax profit fell 3.,9% to £34.4m, impacted by higher interest costs. Revenue increased 20.4% from the same period a year earlier to £2bn, as volumes rose 3.6% to 271,708 tonnes.

The company declared an interim dividend of 7.1p a share, down from 8.2p.

Hilton noted that it has not been immune from the impact of macroeconomic headwinds.

"Across our markets, we have seen volumes come under pressure with the cost of living increasing and consumers becoming ever more cost-conscious. In our Seafood business these trends have been exacerbated with world events leading to unprecedented raw material price increases.

"Given these factors, and combined with the impact of start-up costs and rising interest rates, the board now anticipates that profitability for the year will be below expectations."