March 29, 2013

Hilton Food Group's profit increases slightly in 2012

Boosted by higher sales, UK's Hilton Food Group has booked a slight increase in profit for 2012.

The company said Thursday (Mar 28) that net profit grew by 1.9% to £18.9 million (US$28.6 million) in the 12 months to December 30. Operating profit edged up 0.3% in the 12 months, rising to £26 million (US$40 million).

Gains were driven by higher sales, which rose 5.1% to £1.05 billion (US$106 billion). Volume expansion contributed 4.8% to revenue gains. The company emphasised the result was achieved in the face of "challenging" market conditions.

Over the 12 months, Hilton also reduced its net debt to £5.2 million (US$7.91 million) from £18.7 million (US$28 million). The company said that its strong balance sheet, with gearing at 0.1 times EBITDA, would underpin future growth and a "progressive" dividend policy.

During 2012, Hilton entered into a joint venture agreement with Australian retailer Woolworths Ltd, marking its first expansion outside of Europe. The company said the move illustrated the "transferability" of its business model.