Hilton Food Group PLC's (LSE:HFG) agreement with Singapore’s Country Foods should give it a healthy ‘boost’ in the coming year, according to analysts at broker Shore Capital.
The agreement will allow Hilton Food to expand geographically, boost turnover growth and add to the multifaceted nature of its food businesses, the ShoreCap analysts believe.
The FTSE 250-listed business faced a ‘challenging’ 2022 but pushing into Singapore in 2023 will provide a lift to sentiment boost, they added.
“We welcome this development on a number of fronts: strategy, geography, channel development, and services," the analysts said.
The opportunity could also bolster Hilton Food’s meat-free products as Singapore is at the “forefront of licensing cell-based protein”, they noted.
Country Foods is owned by SATS, a market leader for food in Singapore, and the deal, which begins at the start of 2023, will allow Hilton Food to sell products such as seafood, Australian beef and slow-cooked meats.
Hilton Foods will provide support for Country Foods by focusing on traceability, sustainable packaging and improving overall efficiency.
"This long-term, strategic collaboration with Country Foods is another step forward in our plan to grow our global footprint and diversify our business across Asia and internationally,” said Phillip Heffer, Hilton Food's chief executive in a statement announcing the deal.
Shares in Hilton Food have dropped by 52% since the turn of 2022.