Hilton Food counts the cost of high meat prices

Meat packing firm Hilton Food Group said profit for the 28 weeks to 15 July 2012 was unchanged from the same time last year as high meat prices ate into earnings.

The Cambridgeshire based group, which sells its products to Tesco, Ahold and Albert Heijn said revenue for the period rose to £543m, up from £496m the year before as volumes increased 10 per cent. Pre-tax profit fell slightly to £12.53m from £12.56m a year earlier.

Hilton said it expects full-year profit to remain flat amid high meat prices and as shoppers continue to tighten their purse strings.

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"Against this challenging background, with pressures on consumer expenditure, high meat prices and consumer down trading expected to continue, the group is likely in 2012 to deliver levels of profitability similar to those achieved in 2011," the group said in a company statement.

Chief Executive Robert Watson commented: "Despite the adverse effect of exchange rate movements, an economic environment across Europe which has remained both challenging and uncertain and continued high raw material meat prices, our performance over the first 28 weeks of 2012 has remained steady."

"We have achieved further growth in volumes and turnover, whilst continuing to actively support our customers' growth in very competitive markets".

The group's interim dividend has been increased to 3.4p per share from 3.1p a year earlier.

CJ