17th Jul 2014 09:20
LONDON (Alliance News) - Hilton Food Group PLC said Thursday that trading in the first-half of the year has been in line with board expectations but warned that challenging conditions have been experienced by consumers in some countries and that the continuing appreciation of sterling will have an effect on its full-year results.
In a trading update for the 28 weeks to July 13, 2014 the specialist retail meat packing business which supplies international retailers across Europe and Australia said its performance has been in line with board expectations and that it has continued to expand the business through additional volumes and cooperation with its retail partners.
The company said challenging conditions for the consumer have been experienced in some countries, as anticipated, and the continuing appreciation of sterling against a number of the currencies in which Hilton trades will have an effect on its full-year sterling-reported results.
On a divisional basis Hilton Food Group said that its UK volumes have continued to build toward anticipated levels, following a new agreement with supermarket giant Tesco PLC. The company has made good progress in Western Europe against a backdrop of lower raw material prices, it said, and that it is now benefiting from the introduction of new product lines in 2013 in the Dutch market, where the economy has been relatively subdued.
In Sweden, development work to renew facilities and extend capacity is progressing well, said the meat packing company. "The Irish business, as expected, remains constrained by local conditions, though we are well placed to support business growth once the economy improves," it added.
Hilton Food Group said it is also working closely with its customers across seven countries in Central Europe to support business development. Development work in Australia by its joint venture at Victoria is proceeding in line with the agreed plan, with construction well underway, it added.
Looking ahead the company said its financial position remains strong and that it remains to potential opportunities to grow the business in domestic and overseas markets,.
The company expects to publish its half-year results September 9, 2014.
Shares in Hilton Food Group were trading 3.72% lower at 484.75 pence per share Thursday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
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