Hilton Food reports that its adjusted operating profit for the first half was 17.9% higher.

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Hilton Food reports that its adjusted operating profit was 17.9% higher in the first half year.
The food packaging business had a turnover of £1.26 billion in the first half.
The company’s board of directors declared 7 pence as a share of the interim dividend.

In an announcement on Thursday, Hilton Food Group plc (LON: HFG) reported 38.6% growth in revenues for the first half year. The company attributed the increase to the coronavirus pandemic, which has triggered a trend towards home cooking in recent months.

The company’s shares are currently trading 1% higher on Thursday. In the year to date, Hilton Food has now risen 9%. At the time of writing this article, the company has a turnover of £993 million and a price-earnings ratio of 29.93.

Hilton Food reports revenues of £1.26 billion for the first half year.

For the six months ended July 12, Hilton Food recorded revenues of £1.26 billion, compared to much lower revenues of £912 million for the same period last year. In terms of adjusted operating profit, the food packaging business grew 17.9% to £31.5 million in the first half of the year.

Hilton Food also said on Thursday that volume in H1 was up 22.6%. In Europe, volumes were up 10.2%, with sales pressure at 1.04 billion pounds sterling. The company said that its collaboration with Tesco in the UK also helped to boost its performance in the first half.

According to Hilton Food, its foodservice operations suffered a blow in the first half, but its joint venture Dalco (vegetarian business) proved resilient. The food company announced that it is building a new facility in Belgium, which is due to come on stream in October.

It also recently opened a new plant in Brisbane, which led to a 100.6% increase in H1 volumes in Australasia. A new production facility was also due to open in New Zealand, but plans had to be put on hold due to the coronavirus pandemic, which has so far infected more than 30 million people worldwide and caused just under a million deaths.

Comments by Executive Chairman Robert Watson on Thursday

Commenting on Thursday’s financial update, Chairman and CEO Robert Watson said

“I am very proud of the dedication and resilience of the entire Hilton team to meet and quickly adapt to the challenges posed by COVID-19 to protect our employees, keep our facilities open and support our customers. This response underpinned a strong performance with volume and profit growth, demonstrating the robustness and sustainability of our business”.

The company’s board of directors declared 7 pence as a share of the interim dividend on Thursday, representing a 17% increase.

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