Hilton Foods expands into Saudi Arabia and Canada amidst profit growth

In 2024, Hilton Foods, a prominent food supply company, reported a notable increase in profits, driven by sales growth primarily in the UK and Europe. The company witnessed a 15% growth in profits compared to the previous year, attributing this success to strong core retail meat volumes that outperformed the market. Despite navigating through an uncertain economic landscape, with new global trade tariffs affecting various sectors, the firm identified new growth opportunities in international markets. The Chief Executive, Steve Murrells, announced plans for expansion into Saudi Arabia scheduled for the latter half of 2025 and the upcoming launch of its Hilton Foods Canada brand in early 2027. This strategic movement into new territories reflects the company’s goal of diversifying its market presence. Additionally, revenue from the UK and Ireland division rose by 10.3%, indicating strengthened business performance in its primary market. Conversely, Hilton Foods faced challenges in its vegetarian and vegan offerings, a sector that has experienced declining consumer demand, leading to operational adjustments such as reducing its production sites. Moreover, performance varied regionally as revenue from operations in Australia and New Zealand fell by 9.4%, primarily due to price deflation in the first half of the year. Nonetheless, these markets maintained some resilience, with overall volume growth of 4% recorded in the region. The firm managed to slightly improve profit margins despite overall revenue fluctuation. In light of these developments, Hilton Foods proposed a final dividend up from the previous year, showing confidence in its financial health and commitment to returning value to shareholders. The juxtaposition of solid profit growth against a backdrop of market uncertainties emphasizes the company's adaptive strategies in response to evolving consumer preferences and economic pressures.