Hilton Food Group Shares Surge After Upgrading Full-Year Profit Forecast

Shares in Hilton Food Group (LSE: HFG) surged more than 14% after the company significantly raised its full-year profit forecast, driven by better-than-expected first-half results and favorable business changes. The stock climbed 14.7% to 724 pence, touching a new 52-week high during the session.

Upgraded Guidance Drives Rally

Hilton Food Group announced in its interim results that it now expects full-year adjusted profit before tax from continuing operations to be in the range of £66 million to £71 million. This marks a substantial increase from its previous guidance of £66 million and an earlier range of £60 million to £65 million, significantly beating consensus expectations.

The company attributed the upgraded outlook to the disposal of its loss-making Dalco business and a favorable currency environment. The strong market reaction suggests the update restored investor confidence following a period of operational difficulties.

Strong First-Half Performance

The upgraded forecast was underpinned by a robust first-half performance that exceeded the company's internal targets. Key figures from the report include:

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• Revenue Growth: A 15.3% increase to £2.29 billion.
• Adjusted Profit Before Tax: First-half profit from continuing operations came in at £32.8 million.
• Divisional Strength: The Eastern division was a standout performer, with fresh prepared food volumes in Central Europe rising 26%, which boosted the segment’s adjusted operating profit by 22.7%.

Outlook and Market Context

Management expressed confidence in the company's medium-term trajectory, highlighting future growth drivers. Operational improvements at its Seachill division are expected to provide a meaningful earnings catalyst in the second half of the year. Furthermore, new facilities in Canada and Saudi Arabia are on track to begin contributing to results from 2027.

The stock's advance was almost entirely company-specific, making it the top gainer on the FTSE 250. The mid-cap index, of which Hilton Food is a member, was trading flat on the day, underscoring the market's positive reception to the company's improved financial outlook and strategic progress.