Hilton Food profits dented by higher interest costs

(Sharecast News) - Hilton Food posted a drop in interim profits on Thursday due to higher interest costs, but lifted its dividend. In the 28 weeks to 16 July, adjusted pre-tax profit fell 22.2% to £26.8m, impacted by higher interest costs. Hilton said revenue rose 5.2% to £2.1bn, driven mainly by raw material price inflation, and volumes nudged up 0.2% to 272,321 tonnes.

The company highlighted a strong performance in the Asia Pacific region, delivered through partnership with Woolworths. It also said the core meat category continued to perform well and pointed to new business wins in poultry and food service.

The recovery in the seafood segment is on track following management actions, Hilton added.

The company declared an interim dividend of 9p a share, up 26.8% on the same period a year earlier.

"Hilton Foods is well positioned to continue to trade in line with board expectations for the rest of the year," it said.

"Growth prospects are underpinned by recent acquisitions and the continued recovery in seafood, combined with opportunities to develop cross-category business and utilise wider supply chain management expertise. Hilton Foods continues to explore growth opportunities and wider geographic expansion with existing and new customers. With a strong financial position with leverage and headroom at comfortable levels, the outlook for continued progress remains positive."