Hilton Food Group Plc - Preliminary Results

Financial highlights

 

2018

2017

Change

 

52 weeks to
30 December

2018

52 weeks to
31 December

2017

Reported

Constant currency

 

 

 

 

 

Volume 1 (tonnes)

344,784

303,811

13.5%

 

Revenue

£1,649.6m

£1,357.3m 3

21.5%

21.9%

 

 

 

 

 

Adjusted results 2

 

 

 

 

Adjusted operating profit

£48.7m

£38.3m

27.1%

28.2%

Adjusted profit before tax

£45.7m

£37.4m

22.2%

23.3%

Adjusted basic earnings per share

42.3p

37.4p

13.1%

14.3%

 

 

 

 

 

IFRS results

 

 

 

 

Operating profit

£46.3m

£35.1m

31.9%

 

Profit before tax

£43.3m

£34.2m

26.7%

 

Basic earnings per share

39.9p

33.2p

20.2%

 

Cash flows from operating activities

 

£53.5m

£46.5m

15.1%

 

Net (debt)/cash

£(26.8)m

£25.4m

 

 

Dividends paid and proposed in respect of the year

21.4p

19.0p

12.6%

 

 

 

 

 

 

Notes

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

2    Adjustments comprise acquisition intangibles amortisation of £2.4m (2017: £0.4m) and exceptional acquisition costs £nil (2017: £2.8m) in connection with the 2017 Seachill acquisition

3    2017 Revenue reduced by £2.2m in line with the new IFRS 15 accounting standard

 

 

Strategic highlights

 

·    Seachill successfully integrated into the Group and trading well with new business wins to expand further

 

·    Commencement of Hilton production in Australia from satellite facility in Brisbane; new factory expected to open ahead of schedule in Q3 2019

 

·    Full operational control of Australian joint venture facilities from July 2018 with 15 year long term supply agreements in place

 

·    Joint venture agreement to invest in leading Dutch vegetarian product manufacturer Dalco completed since the year end following competition authority clearance

 

·    Launch of fresh convenience foods in Central Europe

 

 

Operating highlights

 

·    Volume growth of 13.5% driven by a full year contribution from Seachill plus Australia

 

·    Turnover up 21.5% and 21.9% on a constant currency basis

 

·    Adjusted operating profit growth of 27.1% and 28.2% on a constant currency basis with IFRS growth of 31.9%

 

·    Strong operating cash generation and significant £99m investment in facilities to support future growth

 

 

Commenting on the results Executive Chairman Robert Watson OBE said:

 

"In 2018, we continued to deliver on our strategic objectives to build a significantly bigger and more diversified business. Seachill's integration together with the new shellfish business win has driven volume and profit growth further supported in Australia through the start of production and transfer of operational control in the joint venture facilities. We are adding another protein to our offering through an agreement to invest in leading vegetarian producer Dalco and continue to explore further opportunities in both domestic and overseas markets."