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Hilton Food
(LSE:HFG)
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Rating:56Neutral
Price Target:
698.00 p
▲(12.40% Upside)
Action:Reiterated
Date:08/06/26
The score is held back mainly by unstable cash generation and a weaker near-term earnings outlook (2026 profit guidance lower, elevated capex/exceptional costs). Support comes from attractive valuation (low P/E and high yield) and a constructive technical uptrend, though momentum indicators look overextended.
Positive Factors
Resilient core business
The concentration in resilient core meat and prepared-food operations provides a durable earnings base, with stability during difficult trading conditions and growth in selected regions. This supports recurring retail volumes and gives management a stronger platform for future expansion.
Negative Factors
Unreliable cash generation and elevated investment
Recent negative free cash flow combined with higher planned capital spending could increase funding demands over the next several quarters. Rising investment needs may limit discretionary cash, require greater use of facilities, and delay the conversion of accounting profits into shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient core business
The concentration in resilient core meat and prepared-food operations provides a durable earnings base, with stability during difficult trading conditions and growth in selected regions. This supports recurring retail volumes and gives management a stronger platform for future expansion.
Read all positive factors
Hilton Food (HFG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£616.98M
Dividend Yield5.17%
Average Volume (3M)200.69K
Price to Earnings (P/E)29.5
Beta (1Y)0.68
Revenue Growth6.63%
EPS Growth-47.51%
CountryUK
Employees7,389
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.23
Shares Outstanding89,955,710
10 Day Avg. Volume254,722
30 Day Avg. Volume200,690
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)1.24
Price to Sales (P/S)0.11
P/FCF Ratio-24.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£738.33Price Target Upside18.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.51
Revenue Forecast (FY)£4.46B
Hilton Food Business Overview & Revenue Model
Company Description
Hilton Food Group plc, together with its subsidiaries, engages in the food packing business. The company provides meats; soups, sandwiches and wraps, reflecting international cuisine and local tastes, and ready to cook food; smoked salmon, wet fis...
How the Company Makes Money
Hilton Food makes money mainly by supplying chilled food products—most notably packaged fresh meat and other protein/seafood categories—to large retail customers under long-term, high-volume supply arrangements. Revenue is generated from the sale ...
Hilton Food Earnings Call Summary
Earnings Call Date:Mar 31, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 07, 2027
Earnings Call Sentiment Neutral
The call presents a mixed picture: the group has a resilient core meat business, strong liquidity (refinanced GBP 450m RCF) and has realized material value from disposals, with growth projects (Canada, Saudi Arabia, Poland) progressing. However, these positives are counterbalanced by material underperformance and cash/exceptional costs in seafood, vegetarian/vegan segments (Seachill, Foppen, Dalco), inventory write-offs and restructuring charges, and a guidance-led reduction in adjusted PBT for 2026. Management has set a clear strategic plan and financial framework to address weaknesses and target mid-single-digit operating profit growth and >20% ROCE over the medium term, but there are material near-term headwinds and elevated capex/cash demands.Positive Updates
Resilient Core Business
Core meat and fresh prepared food businesses account for ~90% of revenue and remained stable despite a challenging environment: volumes from continuing operations rose 0.2% and core meat volumes in the U.K. were only slightly down despite beef inflation of more than 30%. APAC delivered volume growth and Central Europe achieved double-digit growth in fresh prepared foods.
Negative Updates
Underperformance in Seafood, Vegetarian & Vegan Segments
Seafood, vegetarian and vegan volumes fell 2.6%. Seachill moved into a loss-making position and overall these segments severely pressured group profit and are cited as a key reason for the expected profit reduction in 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Resilient Core Business
Core meat and fresh prepared food businesses account for ~90% of revenue and remained stable despite a challenging environment: volumes from continuing operations rose 0.2% and core meat volumes in the U.K. were only slightly down despite beef inflation of more than 30%. APAC delivered volume growth and Central Europe achieved double-digit growth in fresh prepared foods.
Read all positive updates
Company Guidance
The company reiterated 2026 guidance of adjusted PBT of GBP 60–65m (unchanged since January) after reporting FY2025 adjusted PBT of GBP 73.2m (down c.3% y/y; continuing PBT GBP 69.0m, down 1%), adjusted EPS 56p (‑7.4%) and a tax rate of c.30%; volumes from continuing operations were +0.2% while constant‑currency revenue rose 11.9% and constant‑currency operating profit fell 4.4% (operating margin 2.3% v 2.6% prior). Balance sheet and cash metrics include net bank debt of GBP 126.7m (net debt/EBITDA 0.9x), a GBP 450m 5‑year RCF, core net CapEx of GBP 46.5m in 2025 (core CapEx guidance GBP 50–55m in 2026), GBP 55m spent to date on the Canada project (expected to contribute from 2027 with full benefits by 2029), planned Poland capacity investment of up to GBP 30m, expected net debt increase in 2026, target cash‑flow conversion ~100% (FCF/net income) and a group ROCE target ≥20% (20.1% in 2025, likely below 20% in 2026). Notable one‑offs and provisions: non‑underlying/exceptional net profit GBP 29.3m (including disposal profits of GBP 66.5m), inventory write‑off GBP 18.4m, Foppen relocation cash costs GBP 9.2m, reorganization costs GBP 9.6m (vs GBP 4.2m in 2024) with expected restructuring spend GBP 5–10m p.a.; the medium‑term aim is mid‑single‑digit average operating profit growth, disciplined investment and progressive dividends (FY DPS 35p, +1.4%, final dividend flat).Hilton Food Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
52
Neutral
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.41B | 4.21B | 3.99B | 3.99B | 3.85B | 3.30B |
| Gross Profit | 353.70M | 359.40M | 456.90M | 430.35M | 295.05M | 295.13M |
| EBITDA | 125.20M | 138.30M | 178.70M | 163.59M | 140.86M | 131.34M |
| Net Income | 20.60M | 47.90M | 39.30M | 36.38M | 17.71M | 37.14M |
Balance Sheet | ||||||
| Total Assets | 1.32B | 1.35B | 1.24B | 1.29B | 1.30B | 1.17B |
| Cash, Cash Equivalents and Short-Term Investments | 131.70M | 150.50M | 112.00M | 126.70M | 87.22M | 140.17M |
| Total Debt | 520.20M | 475.30M | 449.30M | 493.29M | 544.95M | 468.13M |
| Total Liabilities | 981.80M | 982.20M | 919.60M | 967.77M | 990.47M | 859.48M |
| Stockholders Equity | 331.30M | 365.90M | 306.60M | 310.31M | 294.36M | 301.40M |
Cash Flow | ||||||
| Free Cash Flow | -2.40M | -18.70M | 49.90M | 107.32M | 3.93M | 30.92M |
| Operating Cash Flow | 82.10M | 70.10M | 124.50M | 166.93M | 60.69M | 88.29M |
| Investing Cash Flow | -27.60M | -16.50M | -62.30M | -54.80M | -139.06M | -98.81M |
| Financing Cash Flow | -17.00M | -18.00M | -72.60M | -71.35M | 24.82M | 27.81M |
Hilton Food Technical Analysis
Positive
621.00
Price Trends
586.41
Positive
551.25
Positive
516.81
Positive
Market Momentum
26.51
Negative
69.08
Neutral
59.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HFG, the sentiment is Positive. The current price of 621 is below the 20-day moving average (MA) of 633.80, above the 50-day MA of 586.41, and above the 200-day MA of 516.81, indicating a bullish trend. The MACD of 26.51 indicates Negative momentum. The RSI at 69.08 is Neutral, neither overbought nor oversold. The STOCH value of 59.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HFG.
Hilton Food Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | £1.69B | 12.66 | 9.74% | 1.73% | 2.31% | 9.04% | |
65 Neutral | £2.78B | 17.76 | 14.99% | 2.16% | 9.52% | 18.08% | |
63 Neutral | £2.03B | 82.05 | 0.73% | 1.80% | 25.76% | -73.03% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | £616.98M | 29.46 | 5.91% | 5.17% | 6.63% | -47.51% |
* Consumer Defensive Sector Average
GB:HFG
Hilton Food
685.00
65.40
10.55%
GB:CWK
Cranswick
5,100.00
183.55
3.73%
GB:PFD
Premier Foods
191.50
9.13
5.00%
GB:ZAM
Zambeef Product
5.25
1.50
40.00%
GB:GNC
Greencore
251.20
9.27
3.83%
Hilton Food Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Hilton Food lifts profit guidance as core meat growth offsets seafood drag
Positive
Sep 3, 2026
Hilton Food Group reported interim adjusted profit before tax from continuing operations of £32.8m, down 5.2% year on year but ahead of expectations, as core meat and fresh prepared foods delivered good growth while seafood unit Foppen faced ...
Business Operations and StrategyExecutive/Board Changes
Hilton Food strengthens board with appointment of Gwyn Burr as non-executive director
Positive
Aug 19, 2026
Hilton Food Group has appointed experienced food retail and public company executive Gwyn Burr as a Non-executive Director and Chair of its Remuneration and Sustainability Committees, effective 3 September 2026. Burr’s extensive board and ex...
Business Operations and StrategyExecutive/Board Changes
Hilton Food Ties Executive LTIP Awards to EPS, TSR and ESG Targets
Positive
Aug 3, 2026
Hilton Food Group has granted new awards under its 2019 Long-Term Incentive Plan to several senior executives, including the chief executive, chief financial officer, and regional chief operating officers. The awards, structured as nil-cost option...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Hilton Food Sells Loss-Making Dutch Vegan Unit to Refocus on Core Meat Business
Positive
Jul 31, 2026
Hilton Food Group has agreed to sell its Dutch-based vegan and vegetarian subsidiary Dalco Food B.V. to Livekindly Production NL B.V. for £5.4m, subject to standard approvals including consultation with the local works council. The move align...
Business Operations and StrategyExecutive/Board Changes
Hilton Food Group Tightens Governance With New Nomination Committee Chair
Positive
Jul 23, 2026
Hilton Food Group plc has announced a boardroom change, appointing non‑executive director Mark Clare as Chair of its Nomination Committee with immediate effect. The move refines the company’s governance structure, signalling continued ...
Business Operations and StrategyExecutive/Board Changes
Hilton Food names Mark Clare as new chair as Mark Allen becomes CEO
Positive
Jun 16, 2026
Hilton Food Group has appointed Mark Clare as independent non-executive chair of the board effective 1 July 2026, while current executive chair Mark Allen will transition into the role of group chief executive on the same date. The move brings a s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.