Hilton Foods FY21 results showed good progress despite lapping tough (COVID boosted) comparatives in FY20. It delivered a 12.7% increase in EBIT although this was largely led by the Australasian business which benefited from the start-up of the New Zealand Food Park and the full buyout of Australia. YoY central costs were also lower which helped, but Europe’s EBIT was broadly flat reflecting the challenging prior year comparatives. Looking to this current year, the profit drivers will be largely inorganic, which is a different model for the group. As securing new business “organically” has been challenging in the pandemic, given travel has been virtually impossible, it has instead been busy in the M&A arena, adding Fairfax Meadow (in the foodservice channel) and Foppen (smoked salmon) to the group as well as buying in the balance of the equity at Dalco (vegetarian products). For the existing businesses, we have assumed modest growth, although over time there is new scope for increased cross-selling given the additions to the protein portfolio. Our FY22E EBIT forecast is unchanged at £87.1m. This shows an 18% uplift. However, interest costs will be higher given the cash outlay for acquisitions (over the £75m placing). This increased interest for acquisitions had been accommodated in our forecasts, but we lift the interest line again today to reflect the recent debt refinance. This adds c£1m to interest costs – the new facility has a 5-year life, usefully extending the maturity, but this came with an increased coupon. Thus FY22E PBT reduces by £1m from £80.8m to £79.8m with EPS of 66.8p. We expect 7% growth in EBIT in FY23E (also unchanged) with PBT reduced by £1m (on interest) to £87.1m, EPS 72.8p. With the changes relatively modest, we do not change our TP (1415p) and retain our BUY recommendation.