Hilton Foods making progress but headwinds persist

14th May 2014 14:19

Meat packing group Hilton Food said growth during the first four months of the year was in line with expectations, despite a challenging consumer backdrop and sterling headwinds. The Cambridgeshire-based company said it had continued to grow thanks to its geographic diversity.In Western Europe, good progress came from the UK, Holland, Denmark and Sweden, while Ireland remains "constrained by local conditions".The UK benefitted from a new agreement with Tesco, with volumes now starting to build towards anticipated levels, although start-up costs are still dragging. The Dutch market, though subject to difficult macroeconomic conditions, benefitted from new product lines introduced. In Australia, volumes continue to build and development work by a joint venture in Victoria is proceeding in line with the agreed plan with construction well underway. House broker Panmure Gordon remains on course for stronger earnings growth in 2014. "Despite challenging consumer conditions in some markets and currency headwinds, Hilton's start to the year leaves it, we believe, on track to deliver good growth in 2014E. The balance sheet remains strong and it continues to explore opportunities to grow 'in both domestic and overseas markets'." Shares in Hilton were down 0.4% to 526.5p by 13:50 on Wednesday.OH