Hilton raises profits but outlook uncertain

13th Sep 2011 08:49

Hilton Food Group increased profits despite being hit by the tough trading conditions, including rising meat prices.The meat packing company posted pre-tax profits of £12.6m in the 28 weeks to 17 July, a 9% increase on the year before. Basic earnings per share were 12.8p, also an increase of 9%. Hilton increased its interim dividend 11% to 3.1p and said it expects to meet performance expectations for the 2011 financial year.However, it said it saw a "difficult and uncertain" trading environment ahead in Europe, which helped push shares down 1% in early trading.The firm said it continued to benefit from its geographically diversified business model; 74% of the group's revenues are now earned outside the UK."The broad spread of the group's businesses across Continental Europe represents a significant strength in terms of reducing Hilton's dependence on any one European economy, during the less certain and more unpredictable economic times experienced over recent years," it said.Hilton called its overall performance "resilient" in the face of continued pressure on consumer spending, saying earnings growth was showing good momentum.Higher meat prices restrained volumes during the period but contributed to strong turnover growth, it added.