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25 Mar 2020
First Take: Hilton Food Group - FY20 Outlook positive
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First Take: Hilton Food Group - FY20 Outlook positive
Hilton Food Group plc (HFG:LON) | 915 27.4 0.3% | Mkt Cap: 819.9m
- Published:
25 Mar 2020 -
Author:
Nicola Mallard -
Pages:
4
FY19 ahead of group expectations
Hilton Food Group has issued a trading update in lieu of its full FY19 results which are delayed following the FCA’s request. The statement indicates that FY19 performance was slightly ahead of group expectations (our forecast was £47.2m, EPS 44.8p), with growth driven by the UK and Australia. Dalco the vegetarian/vegan business also operated well.
FY20 growth built in
Encouragingly, the group’s outlook remains positive. Its model is almost entirely retailer-focused and food stores largely remain open in all markets. Its plants are all operational and it is establishing flexible models to help cope with any COVID 19 issues (around supply chain/labour). Previously announced expansions in New Zealand, Australia and Central Europe underpin FY20 growth prospects, alongside the expansion into newer proteins of fish and plant based foods.
B/Sheet sound
The group has a debt position of £87m (c1.1x EBITDA) reflecting recent capex projects, but the larger ones are now complete. This year the group will complete the Australia JV buyout so debt will increase again (within planned levels), but the group has undrawn facilities of £116m and strong cashflow outside of these specific events. We make no changes to forecasts at this point. FY20E PBT £55m, EPS 51.1p.