Hilton Food Group’s pre-tax profit jumps to £54 million in 2020
- Hilton Food Group’s pre-tax profit jumps to £54 million in 2020.
- The food packaging business reports a 24% growth in volumes.
- Hilton’s board declares 19 pence per share of a final dividend.
Hilton Food Group plc (LON: HFG) said on Wednesday that its pre-tax profit posted an increase in 2020 on the back of robust revenue. The company attributed its hawkish performance to the ongoing COVID-19 crisis that fuelled home consumption last year. The health emergency has so far infected more than 130 million people worldwide and caused over 2.8 million deaths.
Hilton shares jumped close to 5% in premarket trading on Wednesday but lost almost half of the intraday gain on market open. Including the price action, the stock is now trading at a per-share price of £11.46. In comparison, Hilton Food Group had started the year 2021 at a lower £10.82 per share. The price action should come in handy if you are interested in investing in the stock market.
Hilton reports a 24% growth in volumes
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Hilton said that its pre-tax profit in the recent year printed at £54 million. In 2019, its pre-tax profit had come in at a lower £43.2 million. Hilton valued its revenue in 2020 at £2.77 billion versus the year-ago figure of £1.81 billion.
The food packaging business reported a 24% annualised growth in volumes. Hilton said its Australian operations showed resilience after the launch of its new Queensland facility. In separate news from the United Kingdom, food delivery company Deliveroo shares jumped on Wednesday as retail investors joined trading.
Hilton’s board declared 19 pence per share of a final dividend on Wednesday, translating to 26 pence per share of a full-year pay-out, or 22% higher than the previous year. According to the FTSE 250 listed firm, its financial performance in 2021 to date matches management expectations.
Chairman Robert Watson’s comments on Wednesday
Chairman Robert Watson of Hilton Food Group commented on the financial update on Wednesday and said:
“There remain some uncertainties concerning the full impact of Covid-19, including potential recessionary risks, but our robust and sustainable business model and wide geographical spread make us believe we are well placed to meet any future challenges.”
In its previous report published in September, the London-listed company had posted a 17.9% increase in its H1 adjusted operating profit. Hilton Food Group plc remained almost flat on average in the stock market last year. At the time of writing, the food packaging business has a market cap of about £937 million and a price to earnings ratio of 25.20.