Lower material costs and currency exchange rates are impacting Hilton Food Group despite reporting a strong financial performance.
The company reported overall growth in Western Europe but continues to be “adversely affected” by lower material costs and currency exchange translation, causing turnover in Denmark to fall in comparison to last year. The UK operation has seen “encouraging” volume growth relative to last year and reported site development at the UK site will be completed, which will see capacity grow next year.
Hilton’s joint venture with Australian retailer Woolworths, which contributed to high revenues in 2013, is making “good progress”. The Victoria processing site is due to open in the first quarter of next year.
Business in Ireland has picked up following a “challenging” first half of the year. Meanwhile Hilton reported trading to be in line with expectations in Central Europe with continued growth in Poland.
“The Group’s financial position remains strong with net debt growing in line with expectations as the investment projects in UK and Sweden are being executed. Hilton continues to explore opportunities to grow the business in both domestic and overseas markets,” the company said in a statement.
Hilton is to announce its preliminary results for the 52 weeks ended 28 December 2014 on 25 March, 2015.