# Hilton Food Group issues Q3 update with resilient trading and cautious 2026 outlook

- Link: https://www.directorstalkinterviews.com/hilton-food-group-issues-q3-update-with-resilient-trading-and-cautious-2026-outlook/4121225432
- Published: 2025-11-11T07:49:24+00:00
- Author: Amilia Stone

**Hilton Food Group plc** (LON:HFG), the leading international multi-protein food
business, has announced a third quarter trading update for the period from 30^(th)
June 2025 to 19^(th) October 2025.

**​****Trading**

The Group has maintained a resilient trading performance amid a highly inflationary
pricing environment.

·    Volumes across red meat and convenience remain solid, with convenience in particular
continuing to perform well, although ongoing price inflation pressures continue 
to weigh on underlying demand.

·    While we expect the salmon category to benefit from increased demand over the
festive period, the wider UK seafood division continues to be impacted by softer
white-fish demand. This is driven by ongoing high raw material inflation and cautious
consumer spending.

·    The Foppen smoked salmon business in Europe continues to experience operational
disruption due to regulatory restrictions on shipments to the US. As previously 
explained, this has resulted in additional costs.  We have implemented actions to
address the issues, but the ongoing US government shutdown has resulted in delay
to the approvals for the Greek facility to recommence production. As a result, we
do not expect that production in Greece will resume in 2025.

**​****Balance Sheet**

Net debt at the year-end is expected to be only marginally higher than at the end
of FY24. We have received net cash receipts of £71m from the completion of the Foods
Connected and Fairfax Meadow transactions during the quarter, and as previously 
outlined, we have continued the strategic investment to develop our new Canadian
facilities. We also expect a partial inventory unwind as we sell through our Christmas
ranges.

**​****Outlook**

Although underlying demand is subdued, the normal seasonal uplift in Q4 is expected
to support overall performance in the near term.  As a result, the Board now expects
adjusted pre-tax profit for the financial year ending 28^(th) December 2025 to be
in the range of £72m to £75m.  Given the emerging impact on demand from ongoing 
inflationary pressures and the continued disruption at Foppen, the Board has become
more cautious on the trading outlook for 2026 and as such expects profit progression
in the next financial year to be difficult.

The development of the Group’s new operations in Canada and the joint venture in
Saudi Arabia remain on schedule.  The Group continues to leverage its long-term 
customer relationships, strength in product innovation, and operational efficiency
to deliver affordable, high-quality products and to build a strong platform for 
sustainable long-term growth.

**Business Review**

The ongoing business review assessing our operations and portfolio alongside continued
focus on strengthening long-term shareholder returns has reached an advanced stage
and has identified clear opportunities to optimise Hilton Food Group’s operations
going forward. The Group expects to provide an update on the conclusions of the 
review alongside the Full Year Trading Update on 29^(th) January 2026.

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