Hilton Food Group has told how progress is being made in turning round the fortunes of its Grimsby fish processing business.
Late last year the company reeled in profit forecasts due to “unprecedented pressures on seafood”.
The FTSE-listed firm outlined how price mitigation measures and passing rises through to retailers was taking longer than anticipated from its two huge plants. It subsequently closed its traditional smoking operation in the town.
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Now in a trading update for the first few months of the year - said to be in line with board expectations - the company said: “Revenue in UK & Ireland is ahead of last year. As expected higher raw material prices continue to have an impact on volumes. The ongoing turnaround plan in our UK Seafood business remains on track to deliver against our performance improvement and cost saving targets.”
Hilton, founded on meat and headquartered in Cambridgeshire, bought up the Seachill business in 2017, as it diversified its protein operations. It featured the Great Grimsby Business Park plant and South Humberside Industrial Estate operation, as well as the Riby Street smokehouse.
The company employs around 1,400 people in the town. Last year it acquired Dutch seafood entity Foppen.
The statement continued: “Hilton Foods' trading performance since the start of 2023 has been in line with the board's expectations and, despite the uncertain macro-economic environment, the business is well positioned for the year ahead. The group's financial position continues to be strong with leverage and headroom at comfortable levels.
“Our short and medium term growth prospects are underpinned by our recent acquisitions and the continued recovery of our UK Seafood business, combined with opportunities to develop our cross-category business and utilise our wider supply chain management expertise. We also continue to explore growth opportunities and wider geographic expansion with existing and new customers.”
It comes as a change in chief executive looms. Philip Heffer, who has worked in the business since launch in 1994, with the last five at the helm, announced his intention to step down, and will be replaced by former Co-op CEO Steve Murrells CBE. Mr Murrells was the meat category director at Tesco as Hilton emerged as a key supplier. Mr Heffer, who opened an expansion to the South Humberside Industrial Estate base last year, will stay on as an advisor.
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