Coronavirus Update

Hilton Food Group Plc - Latest Preliminary Results

This content has been sourced from: https://www.investegate.co.uk/hilton-food-grp-plc/...

Hilton Food Group plc

Successful delivery in Australia and continued strategic growth

Hilton Food Group plc, the leading specialist international food packing business, today announces its preliminary results for the 53 weeks ended 3 January 2021.

Financial highlights

 

2020

2019

Change

 

53 weeks to 3 January

2021

52 weeks to 29 December

2019

53 weeks

reported

52 weeks

constant currency

 

 

 

 

 

Volume1 (tonnes)

469,110

371,715

26.2%

23.8%

Revenue

£2,774.0m

£1,814.7m

52.9%

50.0%

 

 

 

 

 

Adjusted results 2

 

 

 

 

Adjusted operating profit

£67.0m

£54.7m

22.5%

20.0%

Adjusted profit before tax

£61.1m

£49.7m

22.8%

20.2%

Adjusted basic earnings per share

55.4p

46.0p

20.4%

18.0%

 

 

 

 

 

IFRS results

 

 

 

 

Operating profit

£66.9m

£55.8m

19.9%

 

Profit before tax

£54.0m

£43.2m

25.2%

 

Basic earnings per share

48.6p

40.5p

20.0%

 

Cash flows from operating activities

 

 

£91.7m

£70.3m

30.5%

 

Net bank debt3

£122.2m

£86.8m

 

 

Dividends paid and proposed in respect of the year

26.0p

21.4p

21.5%

 

 

 

 

 

 

Notes

1

Volume includes 50% share of the Australian, Portuguese and Dutch joint venture activities

2

Adjusted results represent the IFRS results before deduction of acquisition intangibles amortisation and exceptional items and also IFRS 16 lease adjustments as detailed in the Alternative performance measures note 15. Unless otherwise stated financial metrics in the Chairman's statement, Chief Executive's summary and Performance and financial review refer to the Adjusted results

3

Net bank debt represents borrowings less cash and cash equivalents excluding lease liabilities

Strategic highlights

 

Turnover up 50.0%* with strong growth in Australia arising from:

 

 

Joint venture transition period concluded with purchase of assets relating to the joint venture

 

 

A full year of the state-of-the art facility in Brisbane, Queensland

 

New facility opened in Belgium for Ahold Delhaize with volume ramp up under way

 

 

New Zealand facility scheduled to open in Q3 this year

 

 

Committed to setting science-based target through the Science Based Targets initiative and signed the Business Ambition for 1.5°C pledge to net-zero by 2050

 

 

Continued growth in protein diversification into plant-based, seafood and convenience foods

       


Operating highlights

 

Strong response to Covid-19 ensuring continuous supply to our retailer partners, keeping our factories open and our colleagues safe

 

 

Volume growth of 23.8%* within which Australia grew 107.9%* and Europe grew 8.5%*

 

·

Adjusted operating profit £67.0m up 20.0%* and basic earnings per share 55.4p up 18.0%*

 

 

Strong operating cash generation of £91.7m up 30.5% supporting a robust balance sheet

 

·

Significant £95.5m investment in facilities to support future growth


* On a 52 week constant currency basis

Commenting on the results Chairman Robert Watson OBE, said:

"I am extremely proud of the commitment and resilience shown by the entire Hilton team during 2020 to adapt quickly to the challenges caused by Covid-19 in order to safeguard our people, keep our facilities open and support our customers. This response underpinned a strong performance with both volume and profit growth and we concluded our joint venture transition period in Australia and purchase of the related joint venture assets while marking our one year anniversary of the opening of our Queensland facility. In Europe we set up a new facility in Belgium during the year to supply Delhaize and continued to further diversify our product offering in the plant-based, seafood and convenience categories. As with all businesses there remain some uncertainties concerning the full impact of Covid-19, including potential recessionary risks, but our robust and sustainable business model and wide geographical spread make us believe we are well placed to meet any future challenges."