24th May 2021 07:58
(Alliance News) - Hilton Food Group PLC on Monday said trading as been in line with expectations so far in 2021, though the food packaging company cautioned Covid-19-related cost pressures have continued.
Ahead of its annual general meeting on Monday, Hilton Food noted its "good progress" in its European arm. This has been helped by lockdowns increasing home consumption of food.
"In the UK, red meat business turnover has grown strongly relative to last year. Additionally, with sous vide volumes currently increasing, we are moving production to Huntingdon from the middle of the year to reduce costs and provide additional capacity. In Hilton Seafood, we have grown volumes and continue to see a shift from counter sales to centrally packed products," Hilton Food explained.
However, it noted it has "continued to incur Covid-related costs in these markets".
Elsewhere, Portugal saw "strong growth driven by red meat and fresh food" and in Belgium, it has opened a new plant. Scandinavia saw revenue progress though a lack of availability of Swedish meat kept a lid on growth.
"In Australia, which has been subject to some regional lockdowns, we have continued to see strong growth stemming from the annualisation of the higher Queensland volume as well as the full consolidation of the results of Bunbury and Truganina. As noted at the year end, we expect the New Zealand meat and fish plant to start up in the third quarter of 2021," Hilton Food added.
"Overall, trading has been in line with the board's expectations following a strong start to the year with momentum continuing in a number of markets."
The company reports on its results for the first half ended July 18 on September 16.
By Eric Cunha; [email protected]
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