Hilton Food beefs up dividend as it invests in future growth
Hilton Food Group PLC (LON:HFG) has raised its interim dividend by 17% to 7p per share after a strong performance driven by the coronavirus (COVID-19) lockdown restrictions.
The FTSE 250-listed food group said it has been dealing with higher demand during the pandemic with people increasing consumption at home.
Hilton Food’s executive chairman Robert Watson said full-year results are anticipated to be in line with expectations.
The company, which packs all of Tesco’s red meat, said it continues to focus on new facilities in Belgium and New Zealand as well as the fish and vegetarian categories to ensure future growth.
In the 28 weeks to July 12, 2020, Hilton Food’s revenue jumped by 39% to GBP1.2bn, with profit before tax up 21% to GBP24mln. Net debt increased by 26% to GBP131mln.
“We view Hilton Food Group as a class act, with world-class facilities that underpin growth ambitions across multiple geographies, proteins (meat, fish and meat-free) and categories,” analysts at Shore Capital noted.
Shares advanced 1% to 1,211.97p on Thursday in early trading.
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