16th Sep 2021 10:31
(Alliance News) - Hilton Food Group PLC on Thursday declared a lifted interim payout as revenue increased, despite a drop in profit.
Shares in Cambridgeshire-based Hilton Food were trading up 4.6% to 1,144.00 pence each in London on Thursday morning.
The FTSE 250-listed food packaging company reported revenue of GBP1.71 billion in the 28 weeks ended July 18, up 35% from GBP1.26 billion a year earlier.
Pretax profit fell 9.9% year-on-year to GBP21.7 million in the same period, from GBP24.0 million.
During the same period in 2019, prior to the onset of the pandemic, the company's interim pretax profit amounted to GBP19.9 million, on revenue of GBP912.1 million.
Expenses increased faster than revenue in the half-year period. Sales costs reached GBP1.52 billion, up 36% from GBP1.11 billion a year earlier. Administrative expenses also increased by 36% year-on-year, reaching GBP152.0 million from GBP111.4 million.
Chief Executive Philip Heffer said: "This has been another strong performance, delivering both volume and profit growth in the face of ongoing disruption as a result of Covid-19. The results we have published today demonstrate the resilience of our business model and our ability to create sustainable value by working in dedicated partnerships with our customers and suppliers around the world."
Hilton declared an interim dividend of 8.2p, up 17% from 7.0p at the same point a year earlier.
The company said it expects its full-year results to be in line with management expectations.
Meanwhile, Hilton said it has continued to invest in its new facilities in Belgium and New Zealand.
Domestic and overseas investment opportunities are currently being explored, the company added.
By Scarlett Butler; [email protected]
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