Hilton Food Group unveils new boss as ‘unprecedented’ inflation hits Tesco supplier profits as revenue jumps
- Former Co-op boss Steve Murrells to become Hilton CEO from early July
- Hilton Food Group reported total turnover increased by almost a sixth to £3.85 billion
- Much of the firm’s sales growth was driven by recent acquisitions such as Foppen.
Hilton Food Group has revealed its new chief executive after major challenges at the food packaging company’s UK seafood business saw a drop in profits.
The Huntingdon-based firm said former Co-operative Group boss Steve Murrells will become CEO in early July, replacing Philip Hepfer, who has been with Hilton for nearly three decades.
Murrells, 57, was most recently in charge of the co-op between 2017 and 2022, after running the mutual retailer’s food division and spending three years as head of pork maker Tulip, later rebranded as Pilgrim. Did.
Costs: Against a more volatile macroeconomic backdrop, Hilton Food Group said it was hit by ‘unprecedented’ inflationary pressures in its UK seafood division.
Heffer said Murrells’ relationship with Hilton dates back to the early 1990s when the Essex-born businessman was director of the meat category at Tesco, which sourced most of its meat from the FTSE 250 company.
His appointment came as Hilton revealed pre-tax income was set to fall 37.5 per cent to £29.6 million for the year ending January 2023 as consumers cut spending due to cost problems.
Against a more volatile macroeconomic backdrop, the group said it was hit by ‘unprecedented’ inflationary pressures in its domestic seafood division and spending on automation.
Additional costs came from insurance and legal expenses related to a fire at its Belgium facility in June 2021, higher interest rates and restructuring measures that resulted in redundancies.
Nevertheless, Hilton reported that total turnover had increased by almost a sixth to £3.85 billion due to an increase in raw material prices and volumes, with the latter expanding for the 15th consecutive year.
Back in January, the business said that sales were very strong in the UK and Ireland during the festive period.
Most of the sales growth was driven by recently acquired firm Foppen, a smoked salmon producer, plant-based food maker Dalco and meat supplier Fairfax Meadow.
The acquisition of Foppen, mainly funded by a £75 million equity issue, helped Hilton gain a foothold in the US market, where the Dutch conglomerate sells fish products to retail giant Costco.
In addition, Hilton has partnered with Country Foods in Singapore as part of growth efforts throughout Southeast Asia.
The company said that all these investments will help enhance its ‘short and medium term growth prospects’, as evidenced by the recent recovery in the UK seafood arm.
Heffer said: ‘Following the challenges we faced in our seafood business last year, we took a number of steps to rebuild profitability, and we are now well positioned for the year ahead.’
The outgoing chief executive intends to step down on July 3 but will remain with the firm as an advisor to the Hilton Foods board.
“After the work we’ve done over the past five years to grow Hilton Foods and expand our commercial model, this is a good moment to step back from running the business,” he said.
Founded in 1994, Hilton supplies food to retailers in 19 countries, including fish to Waitrose and beef and lamb to supermarket chain Tesco. Another major customer is Woolworths, Australia’s largest supermarket chain.
Shares of Hilton Food Group were 2.45 per cent lower at 678p on Wednesday morning, meaning their value has fallen by more than 44 per cent over the past 12 months.
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Source: www.dailymail.co.uk