Meatpacking is about as profitable as it is glamorous. Hilton Food Group’s operating margins came in at 2.6 per cent last year, underscoring that meat is a volume game.
Unfortunately, rising prices and thrifty shoppers do not play to that: strip out the new operation in Denmark, and Hilton’s packed meat volumes declined.
Expansion is Hilton’s mantra, and has served it well: three-quarters of revenues now come from overseas. Yet it still relies on two big supermarket groups.
On 10.5 times earnings, the shares are at a discount to peers but the sector is a classic victim of penny-pinching consumers.
Bargain-hunting carnivores only need apply.
Get alerts on Hilton Food Group PLC when a new story is published