Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on HILTON FOOD GROUP PLC. We currently have 26 research reports from 1 professional analysts.
|17Jan17 05:49||RNS||Block listing Interim Review|
|13Jan17 04:37||RNS||Holding(s) in Company|
|13Jan17 11:54||RNS||Director/PDMR Shareholding|
|12Jan17 07:00||RNS||Trading Statement|
|04Jan17 07:00||RNS||Joint Venture|
|03Jan17 10:44||RNS||Total Voting Rights|
|03Jan17 10:37||RNS||Total Voting Rights|
Frequency of research reports
Research reports on
HILTON FOOD GROUP PLC
HILTON FOOD GROUP PLC
FY16 pre-close +ve surprise: Raising FY16, 17, 18 PBT c.1%, 4% and 6%
12 Jan 17
Today’s slightly better-than-expected FY16 pre-close trading statement prompts us to raise our FY16 PBT estimate by c.1%, reflecting the combination of (1) growth in several of HFG’s key markets, (2) strong overall operating performance, and (3) favourable fx translational benefits (recalling that 62% of FY15 sales were ex-UK). To reflect the positive profit contribution impact of the Portuguese j/v agreement signed on January 4th, the j/v income line is boosted by €1.5m (c.£1.3m) and €2.5m (c.£2.2m) in FY17 and FY18 respectively, representing upgrades of c.4% and c.6%. Once operating at full capacity utilisation, the j/v could well add €3m (c.£2.6m) in FY19. To reflect (1) our increased FY16-FY18 forecasts, (2) current peer EV/EBITDA valuation multiples, and (3) our view that HFG now deserves to trade at a premium to the peer group in view of its impressively strong financial track record (i.e. FY06-FY16 since IPO) for organic and investment-led profitable growth, combined with an array of emerging, highly promising initiatives (see our note “Start of a new chapter of growth” published on October 4th) to expand the scale and scope of HFG’s core business, we raise our TP to 805p (previously 755p). Maintain BUY.
Significant j/v confirmed with Sonae, Portugal; HFG’s 15th country
04 Jan 17
Consistent with a highly-successful, critical strand of HFG’s stated growth strategy (i.e. entering new territories with new customers), HFG has signed a 50/50 j/v with Sonae, Portugal’s leading food retailer, to redevelop and operate Sonae’s existing sourcing/packing facilities to supply c.750 Sonae group stores with a range of packaged meats. We view today’s development, following an initial c.6 month co-operation period, as significant and encouraging on multiple levels; (1) the Portuguese facility is similar in size to HFG’s current third largest plant near Melbourne, Australia in terms of annual tonnage of c.50,000; (2) management states that it expects the redeveloped facility, post an initial €22m investment by the j/v, to be earnings enhancing in FY17 [we estimate that HFG’s share of profits could be as much as €3m in FY19 i.e. c.8% of our forecasted FY16 PBT]; (3) the Portuguese j/v is similar in structure to that of the proven j/v operational arrangement that HFG has had in Australia since 2013, thereby giving us comfort that HFG can capture its fair share of the financial rewards in a risk-managed fashion; and (4) today’s move to a formal j/v has come well within the 6-9 month period guided to when the co-operation agreement was first announced in July 2016, suggesting to us that HFG’s working relationship with Sonae has been highly successful so far. In short, we think the stockmarket will welcome HFG allocating its surplus cash to develop its core business with such a leading retail client, following on so soon from December’s announcement that HFG will invest A$115m to expand its packing capability in Australia. We maintain BUY.
New packing facility; Highly significant for underpinning future growth
06 Dec 16
HFG has announced plans to expand its packing capability in Australia, by constructing (at an expected investment cost of A$115m financed through bank facilities) a new meat processing facility in Queensland, in order to supply Woolworths, the leading grocery retailer in Australia. This is a highly significant development as the new Queensland plant, alongside HFG’s two existing dedicated retail packed meat facilities in Melbourne and Bunbury (both operated as a joint venture with Woolworths) should mean that HFG supplies the bulk of Woolworth’s c.1,000 stores with their red meat needs over time. In short, this development should underpin growth at HFG for many years to come from 2020 onwards, which, in turn, should result in a higher and more stable earnings stream over time, supporting a continued rerating of HFG’s valuation multiple, in our view. We reiterate our BUY.
Panmure Morning Note 03-11-2016
03 Nov 16
Today’s trading update (18th July 2016 to date) will reassure the stock market, likely further comforted by HFG’s frequent financial calendar trading updates given the current backdrop of quite heightened economic and political uncertainty. Management comments that HFG “continues to trade in line with the Board’s expectations”. This, in turn, reflects a continuation of the established overall positive trading patterns seen in the H1FY16 (January 4th to July 17th) results published on September 13th. We reiterate our BUY.
Panmure Morning Note 04-10-2016
04 Oct 16
We think, over the medium-term, investors will look back at FY2016 as the start of a new distinctive chapter of growth for HFG, predicated on the refinement of the already potent HFG investment thesis. We use the recent strong H1FY16 results as a good opportunity to reflect on the long-term implications of a number of initiatives and developments, over and beyond the well-understood and wellexecuted focus on progressively and profitably expanding the scale and scope of HFG’s core business. Our positive thesis on the stock is predicated mainly on the company’s under-appreciated long-term, value-added growth strategy, which will result in a higher and more stable earnings stream over time, supporting a continued rerating of HFG such that it should sit at the top end of the peer range, in our view. Having reflected further on H1FY16 results, and updated our relative valuation exercise, we increase our TP to 755p (715p), giving 22% upside
Panmure Morning Note 13-09-2016
13 Sep 16
H1FY16’s PBT of £16.7m (+26.7% y/y) is ahead of our and consensus expectations of £16m. Our FY16 forecasts are unchanged for now whilst we note the pleasing 12.2% interim dividend increase to 4.6p. These interims impress on three key levels; (1) HFG’s underlying trading performance remains strong despite the context of a dynamic and challenging grocery retailing backdrop, combined with macro uncertainty and attendant currency volatility; (2) the first real evidence of the important financial benefit of HFG’s significant capacity investment in the UK and expansion in Australia; and (3) the strong momentum running throughout the business. We reiterate our BUY.
Panmure Morning Note 19-01-2017
19 Jan 17
Today’s H1FY17 pre-close is more than just solid; it demonstrates FIF’s resilience. As flagged at September’s FY16 results and, as demonstrated by both November’s reassuring AGM trading statement and today’s encouraging H1FY17’s pre-close, FIF is both well-prepared and well-equipped to offset considerable input cost pressures and maintain its progress on multiple levels, whilst the scope for accretive M&A in a highly fragmented market remains an added attraction. We maintain our BUY.
Agriculture starts FY2017 ahead of expectations
10 Jan 17
Carr’s Group’s (CARR LN, HOLD, T/P 175p) issued a statement today which confirmed that the company continues to trade in line with the Board’s expectations for the current financial year. The announcement refers to 18- week period which ended on 7th January and is the first pre-AGM statement since the disposal of the flour milling business for £36m.
Successful Christmas trading leads to...........forecast upgrades
17 Jan 17
On the back of a very strong Q3 trading period, with revenues up by over 70% and volumes by 56%, the Board now anticipates that Distil’s FY17 results “will be ahead of current market expectations”. We are consequently raising our revenue forecasts for the next three years, which also see improvements to our bottom line PBT projections. Brand marketing spend growth of 88% in Q3 was running ahead of revenue growth, reflecting the ongoing brand investment across the product portfolio. This dilutes the impact of operational leverage, but still sees our previous PBT loss of c £120K educe by to thirds to £40K. A strong Q4 performance could potentially see Distil achieve breakeven, but we prefer to err on the side of prudence at this stage.
Naturally sparkling trading statement
24 Jan 17
Fever Tree (FEVR LN, HOLD, T/P 1080p) released a second half trading statement today which beat both our own and market (source: Bloomberg) expectations. The company looks for H2 revenue to advance by 75% compared with 69% in the first half of the year. For the year as a whole, the company expects revenue to be of the order of £102.2m (+73%) compared with £94m consensus.
10 for 17
09 Jan 17
As always at the start of a year, there are significant uncertainties about the year ahead but I think in 2017, the level of uncertainly has decisively moved up a gear. In fact, a leading economist at the LSE, Ethan Ilzetzki, was recently quoted as saying “I view the current global economic environment as the most uncertain in modern history”. Wow.
FY trading update: strategic goals kept despite challenging environment
17 Jan 17
Sales grew organically by 6% (H2: 7.6%, in line with our forecast and slightly better than consensus of 5.7%) and 6.8% on reported figures (in line with consensus, FX: 0.8%). Excluding Russell Stover, sales grew organically 7.4%. FY OG by region: Europe +7.4%, NAFTA +3.4% and ROW +10.2% (driven by Japan and Brazil). Global Retail recorded double- digit growth.