Hilton Food Group PLC (LSE:HFG) shares climbed 3% to 507p after it reported a "resilient" performance for 2025, with trading in early 2026 in line with expectations and guidance unchanged.
The food packer said adjusted profit before tax from continuing operations fell 2.1% to £69.0 million, while revenue rose 10.3% to £4.2 billion, driven largely by raw material inflation. Volumes were broadly flat, up 0.2%.
Performance was supported by its core retail meat operations, though this was offset by weaker trading in its UK seafood arm Seachill and continued losses in vegetarian business Dalco, which led to a profit warning in January.
Executive chair Mark Allen said: "Our core retail meat offering is a resilient business."
He added inflation had "more materially impacted demand and profitability in Seachill".
A strategic review confirmed a sharper focus on Hilton’s core meat operations, with plans to improve, reposition or sell off non-core units such as Seachill, Foppen and Dalco while prioritising growth through existing retail partnerships and international expansion.
For the current year, the group expects adjusted profit before tax of £60-65 million, with the anticipated decline reflecting ongoing challenged parts of the business.
Trading in the first quarter has been steady, with core volumes holding up.
Hilton said it remains cautious on inflation and geopolitical risks but is investing for growth, with capital expenditure of around £100 million planned in 2026.
House broker said the strategy felt "clearer" with the review now complete, which "whilst not necessarily surprising the market, should still please it".