7th Apr 2021 08:39
(Alliance News) - Food packaging company Hilton Food Group PLC on Wednesday boosted its dividend as it reported profit growth for 2020, driven by Australia.
Revenue for the 53 weeks to January 3, 2021, came in at GBP2.77 billion, up a sharp 53% from GBP1.81 billion for the 52 weeks to December 29, 2019. Pretax profit rose by a quarter to GBP54.0 million from GBP43.2 million.
Volumes, which include a 50% share of Australian, Portuguese and Dutch joint ventures, grew by 26% in the year to 469,110 tonnes, driven by strategic growth in Australia, with higher UK volumes and higher demand due to increased consumption at home due to Covid also contributing.
Hilton Food highlighted Australia as a "significant driver" of top-line growth.
"Hilton generated strong operating cash flows during 2020 with, as expected, further significant investment in our facilities to increase capacity, improve operational efficiency and offer innovative solutions to our retailer partners. Hilton remains financially strong with significant cash balances and undrawn committed bank facilities operating well within our banking covenants," the firm said.
On the back of this strong performance, Hilton Food's total dividend for the year was raised to 26.0p from 21.4p.
Turning to the year ahead, the company said the beginning of 2021 has been in line with internal expectations.
"As with all businesses there remain some uncertainties concerning the full impact of Covid-19, including potential recessionary risks, but our robust and sustainable business model and wide geographical spread make us believe we are well placed to meet any future challenges," said Chair Robert Watson.
Shares in Hilton Food were up 4.5% at 1,168.00 pence in London on Wednesday.
By Lucy Heming;Â [email protected]
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