14th May 2014 08:47
LONDON (Alliance News) - Meat packing business Hilton Food Group PLC Wednesday said its trading performance in the year to date has been in line with expectations, supported by continued growth in the UK, Holland and Denmark, but said that the strength of the sterling has continued to impact its reported results.
The specialist meat packer, which packages meat for international food retailers, including Tesco PLC, Ahol and Coop Denmark, said that it has continued to grow by developing the business in existing markets, but warned that challenging consumer conditions in some markets and the current strength of the sterling against a number of currencies in which its trades has "impacted the group's results reported in sterling".
In its last financial year, ended December 30, 2013, Hilton Food's trading performance was driven by strong growth in the UK, Holland and Denmark, where strong volume increases in Holland and Denmark, offset volume reductions in Ireland and Central Europe due to difficult trading conditions.
Hilton Food said Wednesday that in Western Europe it has made good progress in a number of markets, including in the UK, boosted by its new agreement with Tesco PLC last year.
It said that new products in Holland have supported growth in the tough Dutch market, while its new production line in Denmark, has continued to meet customer requirements. In Sweden, the development work to renew facilities and extend capacity is proceeding as planned, it said.
"The Irish business, as expected, remains constrained by local conditions. Our business in Central Europe, where Hilton supplies customers in seven countries, has performed in line with the Board's expectations," the company said in a statement.
In its full-year results back in March, Hilton Food said that it will incur a high level of start-up costs in 2014, both in relation to the expansion of its Huntingdon site in the UK - to enable the planned UK volume increases for its Tesco contract - and to the new meat processing facility being constructed near Melbourne, Australia, as a result of its joint venture with Woolworths Ltd.
Hilton Food said in its statement Wednesday that development work on its joint venture in Australia is proceeding in line with plans, and construction is well underway, while volumes at Bunbury continue to grow.
The group said its financial position remains strong, and as expected, capital expenditure in both the UK and Sweden have increased its debt levels.
Hilton Food shares were off 0.8% Wednesday morning at 525.00 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Hilton Foods