10th Sep 2019 09:16
(Alliance News) - Food processing and packaging Hilton Food Group PLC boosted its dividend Tuesday after its interim revenue grew, despite profit dipping amid increased investment.
For the six months ended July 14, pretax profit narrowed to GBP19.9 million from GBP21.0 million the year prior. This was despite revenue rising to GBP912.1 million from GBP863.6 million the year before.
Profit performance was hurt by a steep rise in net finance costs to GBP6.3 million from GBP1.3 million the year prior.
"Hilton has expanded its operational scale and diversified into new high growth proteins whilst delivering continued increases in volume and profit," Hilton Executive Chair Robert Watson said.
"Our new factory in Brisbane, Australia began production ahead of schedule and we also opened our fresh convenience foods facility in Poland," Watson added. "In the UK we are now packing 100% of Tesco retail packed red meat. Investments in vegetarian and sous vide manufacturers increases the new protein offerings we can supply to our retailer partners."
FTSE 250-listed Hilton proposed a 6.0 pence per share interim dividend, up from 5.6p the year prior.
"Our financial position remains strong and we are well positioned to capitalise on future growth prospects both in domestic and overseas markets as they arise," Watson continued. "Our full year results are expected to be in line with the board's expectations."
Shares in Hilton were 0.7% higher at 984.84 pence in London on Tuesday.
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