News

November 27, 2008

Investors Yet To Be Confident That Hilton Food Can Maintain Profit Margins

Sally White

Has Hilton Food’s marketing skills kept it ahead of the household spending cuts that are pushing steaks off the menu? The specialist meat business supplies tables across Europe, selling to major international food retailers, mainly Tesco, Ahold, Albert Heijn and ICA, from its facilities in the UK, Ireland, Holland, Sweden and Poland. Hilton is therefore exposed to a large chunk of Europe’s slowing economy.

Chief executive  Robert Watson has just updated on the autumn’s trading. He is saying that business continued to be in line with expectations. So far this year all his communications to shareholders have been optimistic. Now he is on line to deliver. In Hilton Food’s earlier statement, covering up to the end of July, he described trading as “robust”, despite rising raw material prices and a tough High Street. “Although we are in a difficult trading environment, we believe that our business...