213800JY7VJFS2OOX3552024-01-012024-12-29iso4217:GBP213800JY7VJFS2OOX3552023-01-022023-12-31iso4217:GBPxbrli:shares213800JY7VJFS2OOX3552024-12-29213800JY7VJFS2OOX3552023-12-31213800JY7VJFS2OOX3552023-01-01ifrs-full:IssuedCapitalMember213800JY7VJFS2OOX3552023-01-01ifrs-full:SharePremiumMember213800JY7VJFS2OOX3552023-01-01ifrs-full:ReserveOfSharebasedPaymentsMember213800JY7VJFS2OOX3552023-01-01ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800JY7VJFS2OOX3552023-01-01ifrs-full:ReserveOfCashFlowHedgesMember213800JY7VJFS2OOX3552023-01-01ifrs-full:OtherReservesMember213800JY7VJFS2OOX3552023-01-01ifrs-full:RetainedEarningsMember213800JY7VJFS2OOX3552023-01-01ifrs-full:EquityAttributableToOwnersOfParentMember213800JY7VJFS2OOX3552023-01-01ifrs-full:NoncontrollingInterestsMember213800JY7VJFS2OOX3552023-01-01213800JY7VJFS2OOX3552023-01-022023-12-31ifrs-full:IssuedCapitalMember213800JY7VJFS2OOX3552023-01-022023-12-31ifrs-full:SharePremiumMember213800JY7VJFS2OOX3552023-01-022023-12-31ifrs-full:ReserveOfSharebasedPaymentsMember213800JY7VJFS2OOX3552023-01-022023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800JY7VJFS2OOX3552023-01-022023-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800JY7VJFS2OOX3552023-01-022023-12-31ifrs-full:OtherReservesMember213800JY7VJFS2OOX3552023-01-022023-12-31ifrs-full:RetainedEarningsMember213800JY7VJFS2OOX3552023-01-022023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800JY7VJFS2OOX3552023-01-022023-12-31ifrs-full:NoncontrollingInterestsMember213800JY7VJFS2OOX3552023-12-31ifrs-full:IssuedCapitalMember213800JY7VJFS2OOX3552023-12-31ifrs-full:SharePremiumMember213800JY7VJFS2OOX3552023-12-31ifrs-full:ReserveOfSharebasedPaymentsMember213800JY7VJFS2OOX3552023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800JY7VJFS2OOX3552023-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800JY7VJFS2OOX3552023-12-31ifrs-full:OtherReservesMember213800JY7VJFS2OOX3552023-12-31ifrs-full:RetainedEarningsMember213800JY7VJFS2OOX3552023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800JY7VJFS2OOX3552023-12-31ifrs-full:NoncontrollingInterestsMember213800JY7VJFS2OOX3552024-01-012024-12-29ifrs-full:IssuedCapitalMember213800JY7VJFS2OOX3552024-01-012024-12-29ifrs-full:SharePremiumMember213800JY7VJFS2OOX3552024-01-012024-12-29ifrs-full:ReserveOfSharebasedPaymentsMember213800JY7VJFS2OOX3552024-01-012024-12-29ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800JY7VJFS2OOX3552024-01-012024-12-29ifrs-full:ReserveOfCashFlowHedgesMember213800JY7VJFS2OOX3552024-01-012024-12-29ifrs-full:OtherReservesMember213800JY7VJFS2OOX3552024-01-012024-12-29ifrs-full:RetainedEarningsMember213800JY7VJFS2OOX3552024-01-012024-12-29ifrs-full:EquityAttributableToOwnersOfParentMember213800JY7VJFS2OOX3552024-01-012024-12-29ifrs-full:NoncontrollingInterestsMember213800JY7VJFS2OOX3552024-12-29ifrs-full:IssuedCapitalMember213800JY7VJFS2OOX3552024-12-29ifrs-full:SharePremiumMember213800JY7VJFS2OOX3552024-12-29ifrs-full:ReserveOfSharebasedPaymentsMember213800JY7VJFS2OOX3552024-12-29ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800JY7VJFS2OOX3552024-12-29ifrs-full:ReserveOfCashFlowHedgesMember213800JY7VJFS2OOX3552024-12-29ifrs-full:OtherReservesMember213800JY7VJFS2OOX3552024-12-29ifrs-full:RetainedEarningsMember213800JY7VJFS2OOX3552024-12-29ifrs-full:EquityAttributableToOwnersOfParentMember213800JY7VJFS2OOX3552024-12-29ifrs-full:NoncontrollingInterestsMember213800JY7VJFS2OOX355bus:CompanySecretary1bus:Consolidated2024-01-012024-12-29213800JY7VJFS2OOX355bus:Consolidated2024-12-29213800JY7VJFS2OOX355bus:Consolidated2024-01-012024-12-29213800JY7VJFS2OOX355bus:Audited2024-01-012024-12-29213800JY7VJFS2OOX355bus:FullAccounts2024-01-012024-12-29213800JY7VJFS2OOX355bus:Director12024-01-012024-12-29213800JY7VJFS2OOX355bus:Director22024-01-012024-12-29213800JY7VJFS2OOX355bus:FullIFRS2024-01-012024-12-29xbrli:pure213800JY7VJFS2OOX355bus:CompanySecretary12024-01-012024-12-29
Annual Report and
Financial Statements 2024
Trusted partner,
innovating every bite
Fuelled by insight, expertise and
apassion for food, we are dedicated
toreimagine the food industry.
Asatrusted partner, we collaborate
closely with our customers to deliver
award-winning innovation across
products and processes. And, by
innovating every bite, we’re driving
long-term, sustainable growth.
Read more about how we innovate
food and enhance lives on pages 14 to 19.
About us
Overview
Hilton Foods at a glance 02
A growth story 04
2024 overview 05
Strategic report
Chairman’s introduction 08
Chief Executive’s summary 10
Business Model 12
Our strategy 14
Performance and financial review 20
2024 Financial performance 22
Risk management and principal risks 24
Stakeholder engagement (Section 172) 32
Sustainability 37
Financial statements
Consolidated income statement 133
Consolidated statement of
comprehensive income
134
Consolidated and Company balance sheet 135
Consolidated and Company statement
of changes in equity
137
Consolidated and Company cash
flow statement
139
Notes to the financial statements 140
Glossary 186
Governance
Our Board 83
Governance at a glance 85
Board activities 87
Corporate governance statement 88
Director’s report 92
Report of the Audit Committee 94
Report of the Nomination Committee 97
Directors’ remuneration report 99
Statement of Directors’ responsibilities 123
Independent auditor’s report 124
Additional information
Registered office and advisors 188
Visit the Hilton Foods Website
Page
07
Page
82
Page
02
Contents
Page
132
Hilton Food Group PLC Annual Report and Financial Statements 2024 01Overview
Strategic report
Governance
Financial statements
Additional information
Hilton Foods at a glance
Our diversified food
and supply chain
services business…
7,500
people globally
20
markets served
internationally
£73.5m
capital investment in 2024
The five pillars of Hilton Foods
Meat
High quality,
efficiently processed,
expertly packed
Seafood
Responsibly
and sustainably
sourced
Vegan and vegetarian
Meat substitute
products ranging
from cutlets to kievs
Easier meals
Slow-cooked, ready
to cook or ready
to eat convenience
Supply chain services
Consultancy
in supply chain
logistics
24
high-performance
facilities
Hilton Food Group PLC Annual Report and Financial Statements 2024 02Overview
Strategic report
Governance
Financial statements
Additional information
Hilton Foods at a glance
continued
…well placed to meet our
international consumer needs
Middle East
Saudi Arabia – JV launching H2 2026
Saudi Arabia
North America
Canada – launching early 2027
Canada
APAC
Australia
New Zealand
UK, Ireland and Europe
Ireland
United
Kingdom
Greece
Portugal
Sweden
Netherlands
Central Europe
Denmark
Hilton Food Group PLC Annual Report and Financial Statements 2024 03Overview
Strategic report
Governance
Financial statements
Additional information
A growth story
30 years of growth
and success
1994
Hilton Foods first factory
opens in Huntingdon, UK.
Our unique business model and competitive
advantage have been key drivers of our
growth, making Hilton Foods a trusted
partner, internationally. These strengths
have fuelled our expansion over the past
30 years and continue to position us for
future international growth and success.
£10m
Revenue
9
Colleagues
2027
Canada
goes live.
2000
First European
factory opens in
the Netherlands.
2002
First warehouse
automation.
2006
Expansion into
Central Europe.
2004
European
footprintexpands
with new facilities
inIreland
and Sweden.
2007
Hilton Foods floats
on the London
Stock Exchange.
Adoption of first
production line robotics
for crate loading.
2012
Our first robotic store
order picking system
isdesigned.
2013
Expansion
into the APAC
region through
a joint venture
with Woolworths
Australia.
2017
Joint venture
established with
Foods Connected.
Acquisition of
UK-based Seachill.
Enter the Portuguese
market via a joint
venture with Sonae.
2021
Enter the UK food service market
through acquisition of Fairfax Meadow.
Acquire 100% of the Dalco vegan
and vegetarian business.
Our first Food Park facility opens
inNew Zealand.
2011
Hilton Foods factory
opens in Denmark.
2015
Our second
Australian facility
opens in Victoria.
2019
Our third, automated Australian facility opens in Queensland.
Enter the fresh food market in Central Europe.
Joint venture with vegan and vegetarian business Dalco.
Expand into Sous Vide in the UK.
2020
Acquire 100% of the
Australian joint venture.
2022
Acquisition of Foppen smoked
salmon business.
Joint venture with automation
specialist Agito.
2023
New Food Park in
Sweden launches.
80% acquisition of Evolve 4
software business.
2016
Hilton Food
Solutions our
meat and fish
wholesaler
is established.
£4bn Revenue
2024
7,500 Colleagues
2025
Enter the Middle East
through joint venture
with NADEC.
Hilton Food Group PLC Annual Report and Financial Statements 2024 04Overview
Strategic report
Governance
Financial statements
Additional information
2024 overview
Performance and
financial overview
Adjusted operating profit (£m)
2
024
104.7
2
023
95.0
2
022
71.1
2
021
73.6
2
020
67.0
2
024
131.4
2
023
139.7
2
022
211.6
2
021
84.6
2
020
122.2
Net bank debt (£m)
Revenue (£m)
2
024
3,988.3
2
023
3,989.5
2
022
3,847.6
2
021
3,302.0
2
020
2,774.0
£4.0bn
(2023: £4.0bn)
Group revenue up 1.9%
onaconstant currency basis,
underpinned by growth
across all regions
£104.7m
(2023: £95.0m)
Adjusted operating
profit up 11.9%
61.0p
(2023: 52.8p)
Adjusted basic earnings
per share up 15.5%
£183.8m
(2023: £216.1m)
Strong cash flow generated
fromoperations
£98.8m
(2023: £86.1m)
Operating profit up 14.8%
43.7p
(2023: 40.6p)
Basic earnings
per share up 7.6%
540,239t
(2023: 517,347t)
Volume growth of 4.4%
34.5p
(2023: 32.0p)
Proposed final dividend of
24.9p, taking total dividend
for 2024 to 34.5p
Read more in the Chairman’s
introduction on page 08.
Our team’s commitment
has driven strong
progress across our
strategic objectives,
fuelling growth
and new expansion
opportunities.”
Steve Murrells CBE
Group Chief Executive Officer
Hilton Food Group PLC Annual Report and Financial Statements 2024 05Overview
Strategic report
Governance
Financial statements
Additional information
Growing our
global footprint
▶ We will leverage our strengths in food
processing, innovation, quality, service
and value to accelerate growth.
▶ In 2024 we continued to expand our
international footprint through our
existing customer relationships and
developing new partnerships in Saudi
Arabia and Canada.
Building further expertise
as a supply chain partner
▶ Strengthening our role as a supply
chain expert enables us to positively
impact key stages throughout our food
supply chains.
▶ Throughout 2024 our Australian
and New Zealand businesses were
recognised as Woolworths Food
Supplier of the Year.
Expanding our
multi-category offer
▶ We are driving organic and
incremental growth through our
multi-category expertise in meat,
seafood, vegan and vegetarian,
easier meals and supply chain
service offerings.
▶ In 2024 we launched new seafood
andslow-cooked meat product ranges
through cross selling into our existing
international markets.
Leverage technology
as a driver of value
▶ We are leveraging technology,
including automation and specialist
food systems, to enhance efficiency,
reduce labour reliance and drive value
across the supply chain.
▶ In 2024 we continued to deploy a
strategic automation programme
across our UK businesses which
positions this region well to effectively
navigate the external environment.
Delivering against
our objectives
Sustainable Protein Plan highlightsStrategic highlights
2024 overview
continued
People
81%
colleague engagement
score in 2024 employee
engagement survey
100%
of our own
operations audited
40%
female representation
ambition by 2035
aligning with the Food
Business Charter
Read more on page 48.
A
score for Climate Change –
top 1.5% of businesses
-32%
reduction in
Scope 1 and 2 emissions
79%
renewable
electricity globally
1,692
tonnes of plastic
reduced in
our packaging
-47%
reduction in food
waste globally
91%
of our packaging
is now kerbside recyclable
in Australia
Read more on page 53. Read more on page 58.
Planet Product
21
43
Hilton Food Group PLC Annual Report and Financial Statements 2024 06Overview
Strategic report
Governance
Financial statements
Additional information
From specialist butchery to
improving the taste and texture
of meat alternatives, we’re
developing innovative culinary
solutions that meet consumer
needs now and in the future.
Strategic report
Chairman’s introduction 08
Chief Executive’s summary 10
Business model 12
Our strategy 14
Performance and financial review 20
2024 Financial performance 22
Risk management and principal risks 24
Stakeholder engagement 32
Sustainability 37
Hilton Food Group PLC Annual Report and Financial Statements 2024 07
Overview
Strategic report
Governance
Financial statements
Additional information
Chairman’s introduction
Driving innovation to
enhance the food we produce
Robert Watson led the Hilton Foods Board
during 2024 before stepping down on
31 December 2024. I joined the Board on
1 October 2024, initially as a Non-Executive
Director before taking over as Board Chair
on 1 January 2025. I am delighted to have
joined this fantastic business, built over
30years by Robert and fellow founder Philip
Heffer, with great people and an excellent
leadership team.
Strategic progress
This business has strong foundations.
Our long-standing customer relationships,
global scale, and product and technology
expertise have enabled us to make continued
strategic progress – even in another
year marked by ongoing political and
economic uncertainties.
During the year, investments delivered
through our automation programme
have strengthened our long-term
operational resilience, unlocked capacity
and positioned us well to deliver on
future growth opportunities. We are also
creating new growth opportunities by
expanding our customer base through new
retail partnerships.
Our new Canadian facility is on track, with
operations expected to commence in early
2027. Meanwhile, the recently announced
NADEC joint venture, due to launch in the
second half of 2026, extends our global reach
into the Middle East, where we see exciting
long-term growth potential.
Group performance
In 2024, we achieved further volume growth,
delivering strong results through sustainable
growth. Our core meat business grew across
all regions, outperforming the market.
The performance of our seafood business
improved and was a significant contributor
to the improved profitability of the UK
and Ireland.
While ongoing market challenges continue
to impact our vegetarian and vegan
business, we have taken proactive measures
to streamline operations – including
consolidating to a single production site.
We remain confident in the category’s
long-term opportunities.
In 2024, we generated strong operating cash
flows, enabling further significant investment
in our facilities. These investments are
increasing capacity, improving operational
efficiency and allowing us to deliver
innovative solutions for our retailer partners.
We have a robust balance sheet operating
comfortably within our banking covenants.
We are well-positioned to continue to invest
to support our growth.
Our performance has been delivered by an
excellent team of people across the whole
Group and I would like to thank them for their
continued hard work and commitment.
Dividend policy
The Board is pleased to maintain a progressive
dividend policy and remains confident that
this continues to be appropriate. With the
I am delighted to be
joining a fantastic
business, with great
people and an excellent
leadership team.”
Mark Allen OBE
Chairman
proposed final dividend of 24.9p per ordinary
share, total dividends in respect of 2024
willbe 34.5p per ordinary share, an increase
of7.8% compared to last year.
Our Board, purpose and governance
The Hilton Foods Board is responsible
for the long-term success of the Group
and establishing its purpose, values and
strategy aligned with its desired culture.
Our purpose is to partner with leading retail
and food service customers to produce high
quality food products at scale. Our principle
of partnership extends to our suppliers,
colleagues and the communities in which
we operate. We enable success through
our passion for innovation, improving
supply chains, processes and packaging,
and continually developing our product
ranges to best meet consumer needs. As an
international food processor and supply chain
specialist, we create efficiency and flexibility,
delivering growth for stakeholders.
To achieve this, the Board has an appropriate
mix of skills, depth and diversity and
arange of practical business experience,
which is available to support and guide our
management teams across a wide range
ofcountries, continuing to address succession
planning and maintaining a talent pipeline.
We balance good governance with an agile,
entrepreneurial approach, considering
workforce and stakeholder interests in all
decisions. I would like to thank my colleagues
on the Board for their support, counsel
and expertise.
Hilton Food Group PLC Annual Report and Financial Statements 2024 08Overview
Strategic report
Governance
Financial statements
Additional information
Sustainability
Sustainability is written into the way we
work and is strategically aligned with our
customer’s priorities. Our 2025 Sustainable
Protein Plan targets reflect our ambition to
make proteins more sustainable, and we
are on track to achieve most of our original
targets, a year ahead of schedule.
In 2024 we published our inaugural Transition
Plan, setting out a road map to becoming
a net zero company by 2048, two years
ahead of our original target. The plan sets
out five areas where we see opportunities
for faster reductions in carbon emissions,
from reducing operational emissions,
through to lowering methane from livestock.
Our Transition Plan is one of the first of its
kind in the sector and demonstrates our
commitment to driving change.
We have made excellent progress in
improving all three of our Carbon Disclosure
Project scores from last year even as the bar
becomes more challenging. We scored an A
for climate, A- for forests and, in our first year
of disclosure, a B for water. This isafantastic
set of scores and puts us among top
businesses globally. We have also cut the
amount of food waste in our factories by 47%
since 2020 by harnessing our strengths in
technology and supply chain management
to innovate at every stage of the food chain.
By the end of 2025, we will be using 100%
renewable electricity across all our operations
in the UK and Europe.
Our scale, our partnerships and our supply
chain expertise gives us a vantage point
which helps us to deliver positive change,
shaping the future of food. The progress we
have made has been particularly notable in
light of rising prices and global instability over
the past few years. We continue to focus on
building impactful partnerships, to scale our
work and make aneven bigger difference
to the sustainability challenges we face as
a planet.
People and Culture
We believe the work we do as a business is
crucial for society and brings value to all our
stakeholders. None of this would be possible
without the people who run, manage and
drive the business forward each and every
day. Ensuring the safety, wellbeing and fair
treatment of everyone in our business is
at the centre of everything we do, fuelling
our progress and shaping our future, and
their voices are crucial to the success
ofthe business.
In 2024, we achieved a 47% reduction in
lost time incident severity rate as part of
our continued focus on safety through
creative campaigns that raise awareness
and encourage safe behavioural changes
at work. Through our annual engagement
survey, wellbeing, continued opportunities
for growth and inclusion came out as key
priorities. We have established robust internal
systems by integrating a core ethical labour
standard across all global manufacturing
sites, with all our sites successfully completing
SMETA audits in the year.
We also launched our online learning
management system at our UK sites,
offering employees flexible and accessible
opportunities for professional growth.
Robert Watson stepped down from the
Board after more than 20 years with the
business, initially as Chief Executive before
transitioning to Executive Chairman in 2018
and then Non-Executive Chairman in2021.
Robert’s contribution to Hilton Foods,
together with Philip Heffer, is immeasurable
and on behalf of all our people, customers
and investors I want to thank them for
everything that they have done to build this
business into what it is today.
Outlook and current trading
2025 trading has started well. While the
macro backdrop remains uncertain we are
confident that we can deliver further deliver
further earnings growth for the full year, in
line with market expectations. Beyond the
near-term, we are well placed for continued
success with a strong medium-term growth
pipeline and recently secured opportunities
in new geographies, underpinning our
expansion strategy and long-term vision.
Our business model and proposition
continue to prove attractive globally,
presenting further opportunities to expand
and strengthen our presence in key
markets. With our track record of disciplined
execution, financial stability and a pipeline
of strategic opportunities, we are confident
in our ability to create long-term value for
allour stakeholders.
Chairman’s introduction
continued
Annual General Meeting
This year’s Annual General Meeting (AGM)
willbe held at the Hilton Foods offices
at2–8The Interchange, Latham Road,
Huntingdon, Cambridgeshire PE29 6YE,
inan in-person physical meeting format
onTuesday, 20 May 2025, at noon. Please refer
to our website at www.hiltonfoods.com/
investors/agm/ for further guidance.
Mark Allen OBE
Chairman
7 April 2025
Hilton Food Group PLC Annual Report and Financial Statements 2024 09Overview
Strategic report
Governance
Financial statements
Additional information
Chief Executive’s summary
Strong profit performance
and volume growth
Overview
In 2024, we delivered solid volume growth,
up 4.4%, across all regions, maintaining
strong momentum against all of our strategic
priorities. This performance was driven by our
core retail meat business – the foundation
of our portfolio – which outperformed
total market growth in every region.
Our seafood operations made significant
progress, delivering enhanced efficiency
and profitability. These improvements
are reflected in our financial results, with
adjusted PBT increasing by 17.1% at constant
currency and by 15.3% on a reported basis.
We are building a business that is
well-positioned for sustainable, long-term
success. We are a scale operator in the
international food industry, offering a highly
relevant, in-demand, product portfolio in
attractive growth markets. Our foundation
is built on long-term customer partnerships
that ensure stable and predictable demand
with a unique operating model and
deep industry expertise – enabling us to
successfully enter new markets and attract
new customers globally. This strategic
position is supported by strong financials
that give us the flexibility to pursue strategic
expansion while maintaining stability and
resilience in the core business.
Region performance
UK and Ireland
This operating segment covers the Hilton
Foods businesses and joint ventures across
the UK and Ireland, including our meat
processing facilities in the UK in Huntingdon,
seafood facilities in Grimsby, our foodservice
business Fairfax Meadow and our Republic
ofIreland meat facility in Drogheda.
The business delivered strong growth in
2024, with volumes increasing by 9.1% and
revenue increasing by 10.6% on a constant
currency basis (10.3% at actual FX rates).
Adjusted operating margins increased to 3.5%
(2023: 2.7%), driven by a strong performance
from the core meat businesses, with seafood
delivering as planned. This performance,
which included record Christmas volumes
across both meat and seafood, contributed
significantly to profit growth across our UK
and Ireland business.
Europe
This operating segment covers the Group’s
meat, easier meals, seafood, vegan and
vegetarian businesses and joint ventures in
Holland, Sweden, Denmark, Central Europe,
Greece and Portugal.
Volumes grew by 1.6%, with revenue
increasing by 3.2% on a constant currency
basis (1.3% at actual FX rates), reflecting
moderating inflationary pressures in meat.
Adjusted operating margins remained stable
at 3.9% (2023: 3.9%).
The vegan and vegetarian market continues
to face changing consumer demand patterns
that are creating structural headwinds.
We have recognised a £9.8m non-cash
impairment charge related to goodwill
acquired with our Dalco business reflecting
the impact of changes in conditions in the
vegan and vegetarian market. We have
responded by consolidating operations
onto a single site and adapting our
approach to address the evolving customer
trends, which are already yielding new
business opportunities.
We have welcomed a new complementary
customer to our facilities inDenmark to
utilise excess capacity, agreed to launch a
frozen burger range in Sweden with ICA
and continue to strengthen our partnership
with Żabka in Central Europe serving a new
market, Romania.
APAC
The Group operates three Australian
processing facilities (Bunbury in Western
Australia, Melbourne and Brisbane)
alongsideour multi-protein food park facility
in Auckland, New Zealand.
I’m incredibly proud of
our strong performance,
with core retail meat
volumes outpacing the
market. The people
at the heart of our
business have been
instrumental in driving
our success.”
Steve Murrells CBE
Group Chief Executive Officer
Revenue Change Adjusted operating profit Change
Region 2024 2023 Reported
Constant
currency 2024 2023 Reported
Constant
currency
UK & Ireland £1,465.9m £1,329.3m 10.3% 10.6% £50.9m £35.5m 43.4% 43.7%
Europe £1,059.0m £1,045.3m 1.3% 3.2% £40.8m £40.9m -0.2% 1.1%
APAC £1,463.4m £1,614.9m -9.4% -6.2% £29.8m £30.2m -1.3% 2.0%
Hilton Food Group PLC Annual Report and Financial Statements 2024 10Overview
Strategic report
Governance
Financial statements
Additional information
Volume growth remained strong at 4.0%,
demonstrating the continued strength
inour core meat category. Revenue declined
6.2% on a constant currency basis (9.4% at
actual FX rates) primarily due to significant
raw material price deflation, particularly in the
first half. In addition, adjusted operating profit
margins improved to 2.0% (2023: 1.9%), despite
the impact of lower interest cost recovery.
Our expertise in supply chain excellence
was recognised when we were named
Woolworths’ supplier of the year in Australia
and New Zealand.
Leading food manufacturer
withhighly relevant products
Hilton Foods is a business driven by a genuine
passion for food innovation. Our food and
innovation experts work collaboratively with
our customers to develop market-leading
ranges that meet evolving consumer
demands and drive volume growth across
allcategories and regions.
At Hilton Foods Australia, we have grown
sales through the relaunch of the barbecue
range including an improved burger range.
In the UK, we have successfully launched
an elevated premium at-home steak
restaurant experience while expanding our
premium Christmas food-to-order products.
Across Europe, we introduced premium tier
range extensions and ranges of healthier
hybrid mince, burger and meatball products
made from beef and poultry.
Throughout 2024, we have continued to
launch initiatives to reduce the use of plastic
in our packaging, which has resulted in
a 1,692 tonne reduction or offset of plastic
use and launched a first-to-market trial of
tray-to-tray packaging circularity in a limited
number ofstores in partnership with one of
our strategic packaging suppliers and Tesco.
Growing across international
markets with significant
expansionpotential
Hilton Foods has unique capabilities to
expand its product portfolio across regions
– selling more proteins and products to our
existing customers around the world. In 2024,
we successfully extended our UK-produced
value-added seafood range to New Zealand
to address the growing consumer demand
for convenient seafood products. We also
expanded into Romania through our Central
European facility by capitalising on our strong
partnerships with Ahold Delhaize and Żabka.
Our geographical expansion reached
asignificant milestone with the recently
announced joint venture with NADEC,
anew customer partnership in Saudi
Arabia – our first entry into the exciting
MiddleEast market, with an estimated
red meat market size of 25m tonnes per
annum. Our operations are scheduled
tocommence in H2 2026, and this venture
aligns with the Kingdom of Saudi Arabia’s
Vision 2030 initiatives that prioritise food
security and offers substantial long-term
growth potential. Our long-term partnership
with Walmart in Canada, where we will
provide comprehensive multi-protein
solutions whilst deploying our state-of-the-art
sorting capabilities, is on track for launch
inearly 2027.
While organic growth and geographical
expansion are our primary growth levers,
we will maintain a disciplined approach to
evaluating M&A opportunities that arise that
could offer strong returns and clear synergies.
Future-ready: consumer
driven supply chain innovation
anddigitaltransformation
Our industry-leading technology is a key
element of our competitive differentiation,
directly addressing critical macro challenges,
including rising labour costs and lower staff
availability, as well as growing demand for
supply chain traceability and transparency.
Through our advanced robotics and
cloud-based infrastructure, we deliver
exceptionally efficient supply chain solutions
that empower retailers to manage their full
end-to-end value chain, from specification
to product quality and production
mapping costs.
The Foods Connected platform strengthens
both our business and our customers’
supply chains by optimising data-led
decision-making that drives cost efficiency
and enables visibility of supply chain risks.
Our category experts continue to pioneer
innovations across our supply chains,
exploring alternative species in seafood and
optimising availability, price and quality
during seasonal peak periods.
Our integrated technology solutions
continue to enhance our core food business,
with significant improvements in complex
automation across our food processing
facilities through our joint venture with
Agito. This year, our UK strategic automation
programme delivered measurable
improvements, including end-of-line robotic
automation, which boosted efficiency and
reduced reliance on labour.
In addition to supporting our core food
business, each of our technology businesses
continues to make progress in unlocking
opportunities to commercialise their
products and services outside the Group.
The Sustainable Protein Plan
The Sustainable Protein Plan underpins
everything we do, and sustainability remains
a key strategic priority for our customers.
Our principle of operating through
partnership extends into sustainability where
we deliver positive change by collaborating
throughout the supply chain. This year,
wehave continued to make progress on
Chief Executive’s summary
continued
our commitments, with a reduction of 32%
inScope 1 and 2 emissions versus 2020 base,
achieving an A CDP score for climate change,
placing us in the top reporting businesses
and we published our inaugural Transition
Plan. We continue to raise our standards with
more ambitious science-based targets, in line
with a 1.5°C pathway, which were validated
in March 2024, and most recently were
founding signatories to the UK Food Business
Charter, committing to an ambition of 40%
female representation by 2035.
Looking forward
Hilton Foods has all the right attributes
todeliver long-term success. We havebuilt
abusiness that is acutely tuned to respond
toevolving consumer preferences and
market dynamics, enabling us to anticipate
demand and drive category growth.
Our competitive advantages are clear:
strength and longevity of partnerships,
industry-leading automation, genuine
sustainability leadership and a strong
track record of launching successful new
product offers.
The strength and the longevity of our
partnerships underpin everything that
wedo, providing stability within our
existing business that creates a strong
platform for growth – whether through
deeper collaboration with existing partners,
developing complementary relationships
orexpanding into new markets. Our financial
strength provides the flexibility to pursue
strategic expansion whilst maintaining our
focus on ensuring that the core business
remains strong and stable.
Steve Murrells CBE
Group Chief Executive Officer
7 April 2025
Hilton Food Group PLC Annual Report and Financial Statements 2024 11Overview
Strategic report
Governance
Financial statements
Additional information
We supplyWe deliverWe manufacture
Driving efficiency through
our specialisation model
We source We innovate
We source responsibly and in
partnership with our customers
from trusted suppliers. We utilise
high quality raw materials to
industry leading standards
and traceability.
High quality protein
Ingredients
Processing equipment
and resources
Packaging
Multi-category food products
Meat
Seafood
Vegan and
vegetarian
Easier meals
Supply chain services through
our businesses Greenchain
Solutions and Hilton Services
Supply chain services
20 international markets
Leading retailers and
foodservice providers
Brands
Co-manufactured
products in line with
their brand and needs.
Manufacturers
Supply chain services
including software and
automation solutions.
We integrate
We provide integrated supply chain services, including food processing, production, sortation and logistics.
These deliver efficiencies through our market leading technology and automation capability.
Read more on pages 14 to 19.
We process high quality proteins
and ingredients to create high
quality, relevant product ranges,
treating our customers’ brand
as our own through transparent,
open book models.
Food products are processed
in our well invested, highly
automated facilities. We
maximise efficiency through
our manufacturing excellence
programme and culture of
continuous improvement.
We innovate products, processes
and packaging to create exciting
new food products and
supply chain solutions, to
meet our customers and their
consumers’needs.
Our data-driven approach
provides us with market-leading
insight, which we use to drive
supply chain improvements
and innovation.
Business Model
Hilton Food Group PLC Annual Report and Financial Statements 2024 12Overview
Strategic report
Governance
Financial statements
Additional information
Our integrated supply chain services deliver
efficiencies through market leading technology
and automation capability
Full end-to-end supply chain
management solution for data
led decision making. Includes the
Foods Connected data insight
platform that supports trusted
and optimised supply chains.
Provides physical material
handling solutions and
automation control software.
Flexible factory-wide Enterprise
Resource Planning system.
Agnostic software solution
for control of production line
equipment with Omega, now
re-branded as Line Control.
Creating value for
all our stakeholders
Our competitive advantages
Outstanding food products Industry leading technology
International reach
Sustainable Protein Plan
Read more on page 17.
Read more on pages 40 to 42.
Read more on pages 10 to 11.
Read more on page 19.
The value we create
Business Model
continued
Our consumers
77%
of our packaging is now recyclable,
helping consumers make more
sustainable product choices
Our people
81%
high colleague engagement score
and developing talent through
international training programmes
Our environment
-32%
reduction in equivalent Scope 1
and2 emissions
Our investors
7.8%
dividend increase
Our customers
£73.5m
strategic investment into our core
business, creating capacity and
capability to support their growth
Our suppliers
1,692
tonnes of plastic removed from
ourpackaging through collaboration
with our supplier partners
Our communities
GOLD
award from Grocery Aid for our
support of their fantastic charity
Read more about our Stakeholders
on pages 32 to 36.
Hilton Food Group PLC Annual Report and Financial Statements 2024 13Overview
Strategic report
Governance
Financial statements
Additional information
We are achieving long-term, sustainable customer
andshareholder value through our strategic objectives:
Our purpose is to deliver growth and success through
partnership. This defines our actions, informs our
decisions, and guides the delivery of our strategy.
We partner with leading retail and foodservice customers
to produce high quality food products at scale that
consumers desire. Our principle of partnership extends
to our suppliers, colleagues and the communities in
whichwe operate.
We enable success through our passion for innovation,
improving supply chains, processes and packaging
weuse, and continually developing our product ranges
to best meet consumer needs.
We deliver growth through creating efficiency and
flexibility in the food supply chain as an international food
processor and a supply chain service specialist.
Our strategy continues to support our customers’
brands and their development through our unique
category offer in their local markets. This approach,
combined with a strong reputation, well invested
modern facilities and a robust balance sheet, has
generated growth over many years.
Our purpose Our strategy Our objectives
Our strategy: Introduction
Growth and success
through partnership
Expanding our
multi-category offer
Read more on page 17.
Building further expertise
as a supply chain partner
Read more on page 18.
Growing our
global footprint
Read more on page 16.
Leveraging technology
asa driver of value
Read more on page 19.
4
1 2
3
Hilton Food Group PLC Annual Report and Financial Statements 2024 14Overview
Strategic report
Governance
Financial statements
Additional information
Growth and
success through
partnership
Ambitious
Collaborative
Responsible
Innovative
Agile
S
t
r
a
t
e
g
i
c
o
b
j
e
c
t
i
v
e
s
Supply chain services
SeafoodMeat
C
a
t
e
g
o
r
i
e
s
a
n
d
s
e
r
v
i
c
e
s
V
a
l
u
e
s
P
r
i
n
c
i
p
l
e
s
S
u
s
t
a
i
n
a
b
l
e
P
r
o
t
e
i
n
P
l
a
n
Sharing
expertise
internationally
Expand our
multi-category offer
Grow
our global
footprint
Leverage
technology
as a driver
of value
Responsible
corporate
citizens
A focus on
development
and inclusion
Long-term
view of
partnership
Consumer-led
and customer-
focused
Build further
expertise as a supply
chain partner
P
e
o
p
l
e
P
l
a
n
e
t
P
r
o
d
u
c
t
Vegan and
vegetarian
Easier
meals
How we deliver
our strategy
Our strategy: Introduction
continued
Our Group strategy
is delivered across
the categories
and services we
operate in, and is
underpinned by
our core values
and principles.
Our values unite the diverse,
international cultures of our
business, ensuring that we
work together to deliver our
strategy, while our principles
articulate how we do what
we do, and how we will
achieve our objectives.
We approach all relationships with
the long-term in mind. We invest
long-term in our people, our
partnerships and our relationships
with key suppliers. This approach
improves outcomes for all involved.
We follow consumer trends closely,
developing ideas that help to keep
our customers ahead of the pack.
We focus on the strategies, needs
and challenges of our customers,
working closely with them to drive
sales and sustainable growth.
People who join Hilton Foods are
joining a welcoming culture that
believes in developing individuals
and their careers, regardless of
their backgrounds or beliefs.
Around the world, we seek out
talented, passionate and ambitious
people who want to stretch
themselves and their goals.
We are market leading experts in
the categories where we operate.
We enter new categories by
acquiring expert organisations with
a proven category focus. Where we
build success and expertise in one
market, we share this expertise
internationally, to the benefit of all
our customers.
We engage positively with the
concerns of the communities that
we serve. As an employer, we focus
on doing the right thing in terms
of inclusion, opportunity, decency
and fairness. We build transparent
supply chains, taking account of
sustainability, climate change, animal
welfare, waste, healthy eating and the
need for human dignity at work.
Hilton Food Group PLC Annual Report and Financial Statements 2024 15Overview
Strategic report
Governance
Financial statements
Additional information
Our strategy: Pillar 1
1
Growing our
globalfootprint
What this means
We will accelerate strategic growth by expanding our global footprint,
deepening partnerships with existing and new customers, and entering
high-potential geographies through joint ventures that offer promising
long-term growth opportunities. We will leverage our strengths in food
processing, innovation, quality, service and value, which in turn delivers
competitive advantage to our customers. This will be delivered through
our ability to enter local markets successfully and create highly automated
facilities that deliver exceptional product offerings.
Progress in 2024
▶ Hilton Foods Canada is set to launch in early 2027, in partnership
with Walmart.
▶ Hilton Foods Global is building customer relationships and expanding
in Asia, leveraging our product catalogue.
▶ We’ve extended our European reach to Romania with Żabka,
our convenience retail partner, already collaborating in Poland.
Looking forward
We continue to explore growth opportunities, using comprehensive
metrics to evaluate potential, ensuring long-term business success,
while meeting our financial hurdle rates for sustainable growth.
Developing new facilities
and product ranges for
WalmartCanada
Market context
Walmart is the fifth largest retailer in the
Canadian market offering a wide range of
products including groceries. With a strong
presence across the country, Walmart Canada
prioritises affordability, convenience and
customer satisfaction through both physical
stores and online services.
Our actions
We’ve conducted extensive Canadian
consumer research to deeply understand
their needs, enabling us to harness
innovation and develop the optimal product
range. Simultaneously, we have broken
ground on our new facility, while refining our
manufacturing lines, automation and store
order-picking services – all in partnership
with Walmart to deliver exceptional value
and meet evolving customer expectations,
supported by best practice from our existing
international footprint.
Outcomes
We remain on track for launch in early
2027. Our work throughout 2025 will deliver
innovative, consumer-driven products,
enhanced manufacturing capabilities,
and streamlined automation processes.
Crate washing and store order-picking
services will lead to improved supply chain
performance, exceptional product quality and
elevated customer satisfaction for Walmart
across the Canadian markets.
Canadian consumers
are seeking consistent
product quality,
new flavour and
format offerings, and
sustainable packaging
solutions, reflecting
their desire for
better choices and
environmental
responsibility.”
Sarah Adamson
Market, Strategy and
PlanningDirector
Overview
Strategic report
Governance
Financial statements
Additional information Hilton Food Group PLC Annual Report and Financial Statements 2024 16
2
What this means
We will accelerate organic and incremental growth through our multi-category
expertise in meat, seafood, vegan and vegetarian, easier meals and supply
chain service offerings. By innovating within these categories, and closing white
space, we will strengthen customer relationships and expand market presence,
meet diverse consumer needs and elevate customers to premium products.
Progress in 2024
▶ Our UK seafood and New Zealand teams collaborated to introduce coated
fish and fishcakes, produced in Grimsby, to the New Zealand market, offering
consumers convenient mid-week meal solutions.
▶ Our UK and Ireland teams worked together to launch a tailored range
of slow-cooked meat products for the Irish market.
Looking forward
We continue to leverage our international network, culinary innovation
to maximise our existing facilities and multi-category expertise; trading
customers up, strengthening customer partnerships, growing market share
and strategically addressing untapped opportunities in key product categories.
Winning premium special
occasions: Elevating consumer
experiences at home
Market context
Through 2024 consumers have increasingly
been opting for special occasions at home
instead of dining out, driven by a focus on
managing their discretionary spending.
However, the desire to treat themselves
remains strong, creating a significant
opportunity for ultra-premium products in
the retail sector that deliver indulgence and
restaurant-quality experiences at home.
Our actions
Hilton Foods UK collaborated with Tesco to
launch the Steakhouse range in 150 stores,
delivering ultra-premium steak cuts and
slow-cooked options. Featuring salt dry aged
steaks, Aberdeen Angus sharing cuts and
30-day matured selections, the range offers
a complete steakhouse experience with
centre piece meats, butters, sauces and sides
– crafted in partnership with Tesco and other
strategic suppliers from concept all the way
through to commercial launch.
Outcomes
Consumers have responded overwhelmingly
positively to Tesco’s new Finest Steakhouse
proposition. The range, including dry-aged
steaks and gourmet sides, has enhanced
special at-home dining occasions, driving
strong engagement and supporting Tesco
to win new customers to their steak category
and growth year on year in market share.
Expanding our
multi-category offer
Tesco’s Steakhouse
proposition has
fulfilled new
premium meal
occasions, offering
consumers
restaurant-quality
meals at home,
elevating their dining
experience from
retailpurchases.”
Matt Lee
Regional CEO,
UK and Ireland
Our strategy: Pillar 2
Hilton Food Group PLC Annual Report and Financial Statements 2024 17Overview
Strategic report
Governance
Financial statements
Additional information
Our strategy: Pillar 3
What this means
Building deeper expertise as a supply chain partner allows us to positively
impact key stages in the food supply chain. It drives product innovation,
optimises end-to-end operations and reduces risks, while enhancing
availability, quality and cost. This approach helps us meet evolving consumer
demands, strengthen supply security, boost competitiveness and foster
long-term sustainable growth.
Progress in 2024
▶ End-to-end UK supply chain review improving availability and volume
salesin retail steaks.
▶ Strengthening upstream partnerships in seafood through spending
timeatsource with our strategic suppliers.
▶ Supported the development of a standardised carbon measurement
toolin seafood.
Looking forward
Building further expertise as a supply chain partner enhances collaboration,
drives efficiency, security of supply and strengthens relationships. This positions
the business for long-term success, ensuring sustainable growth and
market leadership.
Building further
expertise asa
supply chain partner
3
Improving availability,
service level, and product
range for Woolworths in
Australia and New Zealand.
Market context
In Australia, building further expertise as
asupply chain partner to Woolworths is crucial
for maintaining best-in-class service levels,
one of our key non-financial KPI’s.
In a deflationary market, end-to-end
supply chain leadership, and our ambition
for driving continuous improvement are
key to continuing to drive volume growth
and customer satisfaction. By optimising
availability, efficiency, innovative new product
launches and competitive promotions, we help
Woolworths win in their market.
Our actions
Over the past 12 months, we’ve worked closely
with Woolworths and Greenstock to enhance
product availability through better planning
and forecasting, and driven product
innovation, launching 49 new products
inAustralia with a focus on Summer BBQ.
Additionally, we’ve implemented productivity
initiatives in our processing facilities and
partnered with our packaging suppliers to
reduce plastic and increase recyclability of
meat trays, furthering our sustainability goals.
Outcomes
Hilton Foods APAC was proudly recognised
by Woolworths Australia and New Zealand as
the 2024 Protein Trade Partner of the Year in
both territories. The team was honoured for
driving efficiency and sustainability, enhancing
product availability, boosting productivity,
pioneering retail-first burger technology and
eliminating a significant volume of virgin
plastic in Australia. Their efforts also earned
them an Australasian Packaging Innovation &
Design Award (PIDA) for sustainable packaging.
Our collaborative
end-to-end project
withWoolworths has
significantly improved
raw material planning,
forecasting accuracy –
supporting offering
competitive promotions
and innovative new
product launches.”
Adele Davenall-Gabain
Commercial Director,
APACRegion
Hilton Food Group PLC Annual Report and Financial Statements 2024 18Overview
Strategic report
Governance
Financial statements
Additional information
Our strategy: Pillar 4
Foods Connected has
partnered with McDonald’s
to support the delivery of
their Brand Trust Digital
Transformation Programme
on Product
Specification
andFacility Auditing.
Market context
As consumer expectations evolve, quick-service
global restaurant brands are increasingly
focused on building greater transparency and
trust. To protect their brand reputation and
mitigate supply chain risks, food businesses
are looking toenhance end-to-end supply
chain transparency, communication and audit
compliance, ensuring alignment with brand and
industry standards and consumer expectations.
Our actions
We have configured our standard Foods
Connected platform modules to address
McDonald’s specific needs through collaborative
workshops with their Brand Trust Digital
Transformation Team, suppliers and auditors.
As we begin our partnership, we are rolling out
the product specification module and the facility
auditing solution in phases across their global
supply chain.
Outcomes
This contract highlights the industry’s need
forsupply chain digitalisation and reinforces our
platform as a leading solution. The modules we
are rolling out with McDonald’s focus on facility
auditing to ensure compliance and reduce risk,
and product specification management for
ingredients and finished products across all food
types. It also marks the beginning of a valuable
partnership between Foods Connected and
aglobal leader in quick-service restaurants.
What this means
We will leverage our technology stack – including cloud-based supply chain
software, automation, agnostic line interfacing and specialist food ERP systems
– to drive value both internally and externally. These technologies address critical
challenges in the food sector, presenting opportunities to commercialise our
solutions with non-competitive businesses, meeting broad market needs.
Progress in 2024
▶ Continued UK programme of end-of-line automation in Huntingdon and Grimsby
improving health and safety, reducing labour reliance and improving efficiency.
▶ Introduced automated white fish filleting and cutting to reduce our labour
reliance, replace declining skills availability and improve efficiency.
▶ Agito chosen as a supplier partner for a significant product in Australia with
Coca-Cola Europacific.
Looking forward
Digitalising the supply chain and automation are crucial for effective supply chain
management, mitigating labour inflation, improving efficiency, reducing waste
and enhancing sustainability. This remains a key focus for our food business and
anopportunity to commercialise our technology assets.
Leveraging technology
asadriver of value
4
Our goal is to
digitalise and simplify
the food industry for
customers through
world-class software,
insightful reporting,
and expertguidance.”
Roger McCracken
Co-founder and
CEOFoodsConnected
Hilton Food Group PLC Annual Report and Financial Statements 2024 19Overview
Strategic report
Governance
Financial statements
Additional information
Performance and financial review
Improved profit performance driven by
volume growth and market outperformance
This performance and
financial review covers
the Group’s financial
performance and position in
2024. Hilton Foods’ overall
financial performance saw
strong profit growth, driven
by strong volume growth in
our core retail meat category
and continued improvements
in our UK seafood business.
Cash flow generation
was strong, supporting
our ongoing investment
in facilities.
Basis of preparation
The Group is presenting its results for the
52-week period ended 29 December 2024,
with comparative information for the 52-week
period ended 31 December 2023. The Group’s
financial statements have been prepared in
accordance with UK-adopted International
Financial Reporting Standards (IFRS) and the
Companies Act 2006 applicable to companies
reporting under IFRS.
Hilton Foods uses Alternative Performance
Measures (APMs) to monitor the underlying
performance of the Group. Management
uses these APMs to monitor and manage
the business’s day-to-day performance
and, therefore, believes they provide useful
additional information to shareholders and
wider users of the financial statements.
Key performance indicators
How we measure our performance
againstour strategic objectives
The Board monitors a range of financial and
non-financial key performance indicators
(KPIs) to measure the Group’s performance
over time in building shareholder value and
achieving the Group’s strategic priorities.
The nine headline KPI metrics used by the
Board for this purpose, together with our
performance over the past two years, is set
out on the next page. In addition, a much
wider range of financial and operating
KPIs are continuously tracked at business
unit level.
Strong financial
performance in 2024
was supported by
product improvement,
premiumisation and
new ranges.”
Matt Osborne
Chief Financial Officer
2
024
540,239
2
023 517,347
2
022
513,816
2
021 492,588
2
020
460,259
+4.4%
V
olume (tonnes)
Hilton Food Group PLC Annual Report and Financial Statements 2024 20Overview
Strategic report
Governance
Financial statements
Additional information
Performance and financial review
continued
Revenue growth (%)
0.0% 2023: 3.7%
Year on year revenue growth expressed as a percentage.
The 2024 movement reflects volume growth offset by the
impact of fx rates and APAC raw material price deflation.
Adjusted operating profit margin (%)
2.6% 2023: 2.4%
Adjusted operating profit expressed as a percentage
of turnover. The improvement in 2024 mainly reflects
strongtrading in the UK and Ireland.
Net debt/EBITDA ratio (times)
0.9 2023: 1.0
Year-end net bank debt as a percentage of
adjusted EBITDA. The improvement in 2024 is due
to strong profit and cash generation.
Financial KPI Non-financial KPI
Adjusted operating profit margin
(pence per kg)
19.4p 2023: 18.4p
Adjusted operating profit per kilogram processed and
sold in pence. The increase in 2024 mainly reflects strong
trading in the UK and Ireland.
Adjusted earnings before interest, taxation,
depreciation and amortisation (EBITDA) (£m)
£152.6m 2023: £144.0m
Adjusted operating profit before depreciation and
amortisation. The increase in 2024 mainly reflects
higher profitability.
Return on capital employed (%)
21.7% 2023: 18.3%
Adjusted operating profit divided by average of opening
and closing capital employed representing total equity
adjusted for net bank cash/debt, leases, derivatives and
deferred tax. The increase in 2024 is primarily driven by
higher profitability.
Free cash flow (£m)
£62.2m 2023: £112.1m
IFRS cash inflow/(outflow) before minorities, dividends
and financing. The decrease in 2024 is primarily
attributable to reduced favourable working capital
movements and higher tax and capex expenditure.
Growth in sales volumes (%)
4.4% 2023: 0.7%
Year on year volume growth. There was volume growth
across all regions in 2024.
Customer service level (%)
98.4% 2023: 94.1%
Packs of product delivered as a percentage of the orders
placed. The customer service level remains best in class.
Hilton Food Group PLC Annual Report and Financial Statements 2024 21Overview
Strategic report
Governance
Financial statements
Additional information
Group results
Volume and revenue
Volumes grew by 4.4% in the year reflecting
growth across all regions. Additional details
of volume growth by business segment are
set out in the Chief Executive’s summary.
Revenue increased 1.9% to £4.0bn on a
constant currency basis, although flat on
areported basis reflecting APAC raw material
price deflation.
Operating profit and margin
Adjusted operating profit, which excludes
adjusting items as set out in note 31, was
£104.7m (2023: £95.0m) and is 10.2% higher
than last year and 11.9% higher on a constant
currency basis reflecting strong trading in the
UK and Ireland. Adjusting items total £5.9m
net cost (2023: £8.9m net cost) and include
£13.2m of insurance proceeds received in
respect of the claim made in connection
with the fire at our Belgium facility in 2021,
reorganisation costs of £4.2m and a£9.8m
non-cash impairment of goodwill recognised.
After allowing for these adjusting items, IFRS
operating profit was £98.8m (2023: £86.1m).
The Group’s adjusted operating profit margin
in 2024 increased to 2.6% (2023: 2.4%) and
the adjusted operating profit per kilogram
of packed food sold increased to 19.4p
(2023: 18.4p).
Net finance costs
Adjusted net finance costs, excluding
non-underlying items and lease interest,
reduced slightly to £28.6m (2023: £28.9m).
Interest cover as a proportion of adjusted
EBITDA in 2024 increased to 5.3 times
(2023: 5.0 times). IFRS net finance costs were
£37.8m (2023: £37.5m).
Taxation
The adjusted taxation charge for the period
was £18.9m (2023: £17.2m). The effective
tax rate was 24.9% (2023: 26.0%). The IFRS
taxation charge was £19.4m (2023: £10.6m)
with an effective tax rate of 31.8% (2023: 21.9%).
2024 Financial performance
Net income
Adjusted net income, representing profit for
the year attributable to owners of the parent,
of £54.7m (2023: £47.2m) was 15.9% higher
than last year and 17.8% higher on aconstant
currency basis. IFRS net income was £39.3m
(2023: £36.4m).
Earnings per share
Adjusted basic earnings per share at 61.0p
(2023: 52.8p) was 15.5% higher than last year
and 17.4% on a constant currency basis.
IFRS basic earnings per share were 43.7p
(2023: 40.6p). Diluted earnings per share were
43.3p (2023: 40.2p).
Earnings before interest, taxation,
depreciation and amortisation (EBITDA)
Adjusted EBITDA, which is used by the Group
as an indicator of cash generation, increased
to £152.6m (2023: £144.0m).
Balance sheet, cash flow
andfunding
Return on capital employed (ROCE)
ROCE, calculated as adjusted operating
profit divided by the average of opening
and closing capital employed representing
total equity adjusted for net bank cash/debt,
leases, derivatives and deferred tax, was 21.7%
(2023: 18.3%).
Free cash flow and net debt position
Operating cash flow was again strong in 2024,
with cash flows from operating activities of
£183.8m (2023: £216.1m) reflecting higher
profits and reduced favourable working
capital movements. Free cash inflow, after
capital expenditure of £73.5m but before
cashflows from financing activities, was
£62.2m (2023: £112.1m) primarily attributable
to the reduced favourable working
capital movements and higher tax and
capex expenditure.
The Group’s closing net bank debt
(comprising borrowings less cash and
cash equivalents excluding lease liabilities),
reduced to £131.4m (2023: £139.7m) reflecting
bank borrowings of £243.3m net of cash
balances of £111.9m. Net debt including
lease liabilities was £337.4m (2023: £366.6m).
Year-end net bank debt as a ratio of adjusted
EBITDA reduced to 0.9 times (2023: 1.0 times).
At the end of 2024 the Group had undrawn
committed bank facilities under its
syndicated banking facilities of £108.0m
(2023: £108.7m). These banking facilities are
subject to covenants comprising three times
net bank debt to EBITDA and four times
EBITDA interest cover. There was comfortable
headroom under these covenants at the
end of the year for these metrics. The Group
also uses supply chain finance facilities
provided by its customers as a cost-effective
way of managing fluctuations in working
capital requirements.
The resilience of the Group has been assessed
by applying significant downside sensitivities
to the Group’s cash flow projections.
Allowing for these sensitivities and potential
mitigating actions, the Board is satisfied that
the Group has adequate headroom under
its existing committed facilities and will be
able to continue to operate well within its
banking covenants.
Dividends
The Group has maintained a progressive
dividend policy since flotation and has
recommended a final dividend of 24.9p
per ordinary share in respect of 2024. This,
together with the interim dividend of 9.6p
per ordinary share paid in November 2024,
represents an increase of 7.8% compared to
last year 32.0p per ordinary share. The final
dividend, if approved by shareholders, will be
paid on 27 June 2025 to shareholders on the
register on 30 May 2025, and the shares will
be ex-dividend on 29 May 2025.
Treasury management
Hilton Foods does not engage in any
speculative trading in financial instruments
and transacts only in relation to its underlying
business requirements. The Group’s treasury
policy is designed to ensure adequate
financial resources are made available as
required for the continuing development
and growth of its businesses, while taking
practical steps to reduce exposures to foreign
exchange, interest rate fluctuation, credit,
pricing and liquidity risks, as described below.
Foreign exchange rate movements
and country-specific risks
While the presentational currency of the
Group is Sterling, a significant proportion
of its earnings are generated in other
currencies, principally the Euro and Australian
Dollar. The earnings of the Group’s overseas
subsidiaries are translated into Sterling at
the average exchange rates for the year and
their assets and liabilities at the year-end
closing rates. Changes in relevant currency
parities are monitored on a continuing
basis, with the timing of the repatriation of
overseas profits by dividend payments and
the repayment of any intra group loans to
UK holding companies are made with due
regard to actual and forecast exchange
rate movements.
The Group’s policy is only to use forward
currency exchange rate contracts for the
purpose of mitigating commodity risk
occurring in the normal course of business.
At no time will the Group take positions
in derivative instruments for the purpose
of earning a stand-alone profit from such
instruments. The majority of Hilton Foods
overseas subsidiaries all have natural hedges
in place as they, for the most part, buy raw
materials, employ people, source services,
sell products and arrange funding in their
local currencies. As a result, Hilton Foods
main foreign exchange exposure is limited
Hilton Food Group PLC Annual Report and Financial Statements 2024 22Overview
Strategic report
Governance
Financial statements
Additional information
to its equity/major capital expenditure
investment in each overseas subsidiary
and its joint ventures, and in the translation
ofoverseas earnings.
The level of country-specific risk currently
remains material for many businesses, in
terms of the impact of macroeconomic
developments and commodity price
movements. The Group sells high quality
basic food products, for which there will
always be continuing demand, to successful
blue-chip retailers in developed countries.
Interest rate fluctuation risk
This risk stems from the fact that the interest
rates on the Group’s borrowings are variable,
being at set margins over SONIA and other
interbank rates which fluctuate over time.
The Board will continue reviewing hedging
costs and options as it is expected global
interest rates may increase materially beyond
current levels.
Customer credit and pricing risk
As Hilton Foods customers comprise a small
number of successful and credit worthy
major multiple retailers, the level of credit risk
is considered to be insignificant. Historically,
the incidence of bad debts has been
immaterial. Hilton Foods pricing is based
either on a cost plus, packing rate or volume
based reward basis with its customers.
Liquidity risk
Hilton Foods remains strongly cash
generative, has a robust balance sheet
and has committed banking facilities for
the medium term, sufficient to support
its existing business. All bank positions
are monitored on a daily basis and capital
expenditure above set levels, together with
decisions on intra group dividends, are all
approved at Board meetings. All long-term
debt is arranged centrally and is subject
toBoard approval.
2024 Financial performance
continued
Tax strategy
Hilton Foods is committed to paying the
right amount of tax at the right time,
complying with all relevant laws and
regulations, and recognising the importance
of the tax contributions that it makes in
the countries inwhich its profits originate.
We have a low-risk appetite toward tax
planning, with asimple corporate structure
based around our commercial operations.
We do not engage in planning schemes
or arrangements that could be considered
aggressive or artificial in nature. The Group’s
approach to transfer pricing is to ensure
that transactions reflect the underlying
commercial arrangements, and therefore the
use of transfer pricing to artificially avoid tax
is prohibited. We also fully endorse the aims
of the OECD/G20 Inclusive Framework on
Base Erosion and Profit Shifting (BEPS) and
its related package of Actions: www.oecd.org/
tax/beps/about/. Our tax strategy can be
found on our website: www.hiltonfoods.com/
investors/corporate-governance/
Going concern statement
The Directors have performed a detailed
assessment, including a review of the Group’s
budget for the 2025 financial year and its
longer term plans, including consideration
ofthe principal risks faced by the Group.
The resilience of the Group has been assessed
by applying significant downside sensitivities
to the Group’s cash flow projections and
a reverse stress test, flexing operating
profit to determine what circumstance
would be required to breach the two
financial covenants, net debt/EBITDA and
interest cover.
Allowing for these sensitivities and potential
mitigating actions, the Board is satisfied
that the Group is able to continue to operate
well within its banking covenants and
has adequate headroom under its new
committed facilities which do not expire
until January 2027. The Directors are satisfied
that the Company and the Group have
adequate resources to continue to operate
and meet its liabilities as they fall due for
the foreseeable future, a period considered
to be at least 12 months from the date of
signing these financial statements. For this
reason, the Directors continue to adopt
the going concern basis for preparing the
financial statements.
The Group’s net bank debt as at 29 December
2024 was £131.4m. It has access to undrawn
committed loan facilities of £108m which
have an expiry date of January 2027.
Future geographical expansion which is not
yet contracted, and which is not built into our
internal budgets and forecasts, may require
additional or extended banking facilities,
and such future geographical expansion
will depend on our ability to negotiate
appropriate additional or extended facilities,
as and when they are required.
The Group considers that the likelihood of
the reverse stress test scenario occurring
tobe remote. Internal budgets and forward
forecasts, which incorporate all reasonably
foreseeable changes in trading performance,
are regularly reviewed by the Board and
show that it will be able to operate within
its current banking facilities, taking into
account available cash balances, for the
foreseeable future.
Viability statement
In accordance with provision 31 of the
2018 UK Corporate Governance Code,
the Directors confirm that they have a
reasonable expectation that the Group will
continue to operate and meet its liabilities,
as they fall due, for the three years ending in
December 2027.
A period of three years has been chosen for
the purpose of this viability statement as it
is the key period of focus within the Group’s
strategic plan, which is based on the Group’s
current customers and does not incorporate
the benefits from any potential new contract
gains over this period.
The Directors’ assessment has been made
with reference to the Group’s current
position and strategy taking into account
the Group’s principal risks, including those
in relation to the changing geopolitical and
macroeconomic environment, and how these
are managed. The strategy and associated
principal risks, which the Directors review
at least annually, are incorporated in the
strategic plan and such related scenario
testing as is required. The strategic plan
makes reasoned assumptions in relation
to volume growth based on the position
of our customers and expected changes
in the macroeconomic environment and
retail market conditions, expected changes
in food raw material, packaging and other
costs, together with the anticipated level of
capital investment required to maintain our
facilities at state-of-the-art levels. The Group’s
current bank facilities expire in January 2027
and are expected to be renegotiated prior
to their expiry on comparable terms to the
existing arrangements.
Cautionary statement
This Strategic report contains forward looking
statements. Such statements are based on
current expectations and assumptions and
are subject to risk factors and uncertainties
which we believe are reasonable. Accordingly,
the Group’s actual future results may differ
materially from the results expressed or
implied in these forward-looking statements.
We do not undertake to update or revise
any forward-looking statements, whether
as a result of new information, futureevents
or otherwise.
Matt Osborne
Chief Financial Officer
7 April 2025
Hilton Food Group PLC Annual Report and Financial Statements 2024 23Overview
Strategic report
Governance
Financial statements
Additional information
Risk management and principal risks
Risk management process
Board
Responsibility for risk management including the appropriate identification of risks and the
effective application of actions designed to mitigate those risks, resides with the Board.
The Board also sets the risk appetite and considers how best to minimise and control the
probability and potential impact of identified risks if they were to crystallise.
Lines of defence
1
st
– Business operations ‘Management Controls’
Local business units carry out effective risk management activities in order
to identify, monitor, mitigate and report on risks that impact on operations.
2
nd
– Oversight and Key Assurance Functions
Key oversight and assurance functions ensure the effective management
of critical risks. This includes policies, procedures and training.
3
rd
– Internal Audit and Consultants
Internal independent review over the completeness and effectiveness
of our internal controls and risk management systems.
4
th
– External Audit and Regulators
Third party and independent review of all business units.
Review of the viability and going concern of the business.
We believe that a successful risk management framework carefully balances risk
and reward, and applies reasoned judgement and consideration of potential likelihood
and impact in determining its principal risks.
Chairman
Chief Executive Officer
Non-Executive Directors
Chief Financial Officer
Appetite and
Attitude
Identification
Measurement
and Assessment
Management
and Mitigation
Monitoring,
Reporting and
Governance
Audit Committee
The Audit Committee reports to the Board on the substance of the risk assessment
and any changes to the nature, likelihood or materiality of those risks.
The Group Internal Audit and Risk Director presents at every Audit Committee
meeting on the internal controls and risk management systems.
Risk Management Committee
The Risk Management Committee reports regularly to the Audit Committee
on the risk assessment and any changes to the nature, likelihood or materiality
of those risks. The Risk Management Committee also considers the risk appetite
and reviews the progress and development of internal controls and their implementation
aligned to principal risks. The Chair of the Risk Management Committee also oversees
the scenario-based business continuity management exercises.
Business unit risk registers
Business units and functions manage and monitor their own key risks through
regular review, ensuring the risk registers and risk mitigations are accurate. The Group’s risk
register is compiled through combining the set of business unit risk registers supplemented
by formal interviews with senior executives and Directors of the Group.
Group Internal Audit
and Risk Director
Representatives from
Executive Leadership Team
Key international leaders
across the business
Group Internal Audit and Risk Director Site Managing Directors
Our approach to
risk management
Hilton Food Group PLC Annual Report and Financial Statements 2024 24Overview
Strategic report
Governance
Financial statements
Additional information
Risk management and principal risks
continued
Overview
Effective risk management
atHilton Foods is essential
tothe delivery of our strategic
objectives and aims to
safeguard the interests
ofall our stakeholders in an
increasingly complex world.
Our proactive approach
torisk management enables
the long-term sustainable
growth of all aspects of our
business and is integrated
into everything we do.
Risks and risk management
In accordance with provision 28 of the
2018 UK Corporate Governance Code, the
Directors confirm that they have carried
out a robust assessment of the emerging
and principal risks facing Hilton Foods
that might impede the achievement of
its strategic and operational objectives
or affect performance and cash position.
As a leading international food and supply
chain services provider in a fast-moving
environment, it is critical that Hilton Foods
identifies, assesses and prioritises its risks.
The result of this assessment is a statement
of principal risks together with a description
of the main controls and mitigations that
reduce the effect of those risks were they to
crystallise. This, together with the adoption
of appropriate mitigating actions, enables
us to monitor, minimise and control both
the probability and potential impact of
these risks.
How we manage risk
Hilton Foods takes a proactive approach
to risk management with well-developed
structures and a range of processes for
identifying, assessing, prioritising and
mitigating its key risks. The delivery of
our strategy depends on our ability to
make sound risk informed decisions.
The Internal Audit function provides
independent assurance that Hilton Foods
risk management, governance and internal
control processes are operating effectively.
The Audit Committee are regularly updated
on the risk-based assurance plan by the
Internal Audit function who maintain and
review processes for risk identification
and assessment, measurement, control,
monitoring and reporting. Risk exposure
is reviewed by the Audit Committee
twice a year. For more detail, please see:
Ourapproach to risk management.
Risk management process
andrisk appetite
The Board aims to balance a robust and
proportionate control environment with
the agility needed to pursue new business
opportunities. Despite these efforts, the
business will inevitably face certain risks and
uncertainties, as outlined below.
At Hilton Foods we nurture a culture where
everyone is required to be aware of the risks
facing the business and their responsibilities
for managing them. To support this, we
maintain and create an environment where
employees feel comfortable speaking
up. Our processes for identifying existing
and emerging risks and responding
collaboratively to them is managed by the
Internal Audit function.
Identified risks are measured and assessed
for likelihood and impact allowing for the
correct risk responses to be developed.
Policies, procedures, controls and other
measures are put in place to mitigate risks.
We use a suite of preventative, detective and
corrective controls.
Risk ownership is assigned to key leaders.
This ownership is reviewed as part of
the ongoing risk management process.
Mitigation plans and controls are developed
collaboratively with the risk owner to ensure
effective management.
Not all the risks listed are within the Group’s
control and others may be unknown or
currently considered immaterial, but
could turn out to be material in the future.
These risks, together with our risk mitigation
strategies, should be considered in the
context of our risk management and internal
control framework, details of which are set
out in the Corporate governance statement.
It must be recognised that systems of internal
control are designed to manage rather than
completely eliminate any identified risks.
Current and emerging risks
Increasing geopolitical uncertainty
Geopolitical uncertainty and increasing levels
of active hostilities in multiple regions remain
a significant concern and increases the risk
impacting our supply chains and operations.
Disruption to energy markets, global shipping
and international trade, particularly in relation
to government tariff strategies, can also have
far-reaching impacts. However, our continued
review of mitigations enables us to maintain
resilience in our supply chains and operations.
The macroeconomic environment
Cost-of-living pressures and economic
uncertainty continue in much of the world,
with elevated inflation and interest rates not
expected to reduce as rapidly as previously
expected. As these trends continue and as
levels of inflation and interest rates further
ease, we expect consumer spending and
eating habits to recover but remain cautious.
We recognise the effect of higher interest
costs on all businesses and we continue to
focus on ways of reducing our exposure such
as the use of cash pooling and exploring
working capital financing.
Our continued focus on cost control,
innovation and factory efficiency, and the
implementation of automation and robotics
is enabling us to manage the inflationary
pressures the industry is currently facing.
Through our strong customer relationships
we are able to support consumers to navigate
through these challenging times.
Budgetary changes in the UK in relation
to National Insurance Contributions and
wage inflation in the UK and Ireland, Europe
and APAC regions are also factors being
mitigated through our 2025 budgets and
regional planning.
Changing regulatory landscape
Hilton Foods has a strong basis of
environmental, social and governance policies
and strategy. We recognise the potential
disruption from growing environmental
regulations and the resourcing requirements
to meet upcoming disclosure requirements.
We are actively enhancing our mitigations,
including third party risk management and
supply chain due diligence.
We continue to monitor international
regulatory and trade environments as they
evolve and amend processes and operations
as required, including as a result of the new
administration in the USA.
We work closely with our customers and
supply chains to adapt to further revisions to
border processes and trade agreements.
Hilton Food Group PLC Annual Report and Financial Statements 2024 25Overview
Strategic report
Governance
Financial statements
Additional information
Cyber risk
Information systems and cyber security risk
continues to pose a threat to the Group and
remains a principal risk. We are aware that
specific sectors, including manufacturing
and logistics, are increasingly a focus of such
attacks. While the cyber security risk profile
for Hilton Foods has remained stable during
the year, we recognise the challenges and
opportunities that are emerging through
the development of artificial intelligence.
We continue to invest in our IT systems
toremain protected and match the
ever-increasing number and diversity of
external security threats.
The Board, through the Audit Committee,
receives key updates from the Group Internal
Audit and Risk Director, the Chief Information
Officer and Head of IT Security regarding our
risk mitigation activities focusing on both
the direct threat to our operations and the
wider supply chain, and the continued drive
on cyber risk awareness and training across
the Group.
The internal audit plan for 2024 included
specific reviews on IT access governance and
IT systems and cyber security resilience.
Hilton Foods fosters a digitally secure
culture through:
▶ Information Security and IT policies are in
place and are regularly reviewed. Our cyber
security strategy and actions are regularly
monitored by the Audit Committee and
the Board.
▶ Compulsory IT and cyber security training
is regularly run, including internal phishing
awareness campaigns, to validate that
learning is embedded throughout
the organisation.
▶ Regular employee communication and
engagement through cyber security
newsletters and email alerts to raise
awareness of emerging threats.
▶ A centrally governed IT function continually
monitors known and emerging threats
through dedicated platforms, and in turn,
considers the effectiveness of our incident
response plans to manage and eliminate
these risks. This includes maintaining
firewalls and threat detection and
response systems with regular penetration
testing performed.
▶ Expanding our IT response plans to
incorporate wider stakeholders and
continue to develop alignment to the
latest threats. Employees are encouraged
to log all security issues, facilitating
rapid response to emerging threats.
Easier reporting of suspected phishing
emails has been enabled through a
shortcut embedded in email software.
Movement of principal risks in 2024
The heat map shows the relative positioning
of our principal risks at the date of this
Annual Report.
Recognising that our growth into the
Canadian and Middle Eastern markets
requires us to prepare for potential new
compliance and resource requirements, as
well as the need for cultural alignment, we
have increased the rating for risks 4 and 9.
Due to the challenges and opportunities
that are emerging through the development
of Artificial Intelligence we have applied
upwards movement to risk 8.
Risk management and principal risks
continued
Principal risk
1
Macroeconomic and geopolitical environment
2
Customer success impacting growth potential
3
Customer diversity and dominance
4
Reliance on key personnel
5
Global supply base
6
Contamination within the supply chain
7
Business disruption
8
Information security, technology and cyber-security
9
Health and safety
10
Climate change
Likelihood
Impact
2
6
4
9
1
8
3
7
10
5
Hilton Food Group PLC Annual Report and Financial Statements 2024 26Overview
Strategic report
Governance
Financial statements
Additional information
Risk management and principal risks
continued
Risk 1
No movement
Description
The progress of the Hilton Foods business is affected by the macroeconomic
andgeopolitical environment and levels of consumer spending.
Its potential impact
No business is immune to difficult economic climates. The macroeconomic and
geopolitical landscape, is placing extraordinary financial pressures on our supply chains,
operations, consumers and customers.
The risk of energy price volatility and the ongoing cost of living crisis is impacting
consumer spending and eating habits. As a result, our retail customers are under
immense pressure to deliver value and are sharing that pressure with supplier partners.
Risk mitigation measures and strategies adopted
Our strong growth model, based on successful diversification across different proteins,
and expanding as a technology-led supply chain partner is built on our ESG credentials
which underpin our business resilience.
We continue to broaden product ranges with our retail partners, maintaining a
single-minded focus on minimising unit packing costs, while continuing to deliver high
levels of product quality and integrity.
Hilton Foods is able to harness its innovative and agile approach with its class-leading
technology and systems to respond quickly and effectively to macroeconomic challenges
and opportunities.
We recognise the impact of increasing interest costs on all businesses and we continue
to focus on ways of reducing our exposure such as the use of cash pooling and exploring
working capital financing.
Risk 2
No movement
Description
Hilton Foods growth potential may be affected by the success of our customers and
thegrowth of their packed food sales.
Its potential impact
Hilton Foods products predominantly carry the brand labels of our customers so our sales
are dependent on the success of our customers and their consumer perception, which is
increasingly influenced by environmental, social and governance (ESG) considerations.
Risk mitigation measures and strategies adopted
Hilton Foods plays a very proactive role in enhancing its customers’ brand values, by
providing high quality, competitively priced products, high service levels, ongoing product
and packaging innovation and category management support. We recognise that quality
and traceability assurance are integral to our customers’ brands and we work closely
with customers to ensure rigorous quality assurance standards are met. Our customers
continually measure performance across a very wide range of parameters, including
delivery time, product specification, product traceability and accuracy of documentation.
We work closely with our customers to identify continuous opportunities across the supply
chain, including enhanced product presentation, extended shelf life and reduced wastage
at every stage in the supply chain.
Our ESG strategy underpins the growth of our product sectors for our customers and
supports them to reach their goals. Our ambitious 2025 Sustainable Protein Plan is in
partnership with our customers and suppliers as we engage in the key collaborative
initiatives that drive sustainability for our sectors and raise the bar together.
We have set stretching goals that drive impactful actions that become integrated into our
core business practices. Our data collection platform, Foods Connected, demonstrates
the assurance of standards across our supply chains, and allows us to measure progress
towards our 2025 targets.
The detail of our strategy, and its impact, are described within the Sustainability section
ofthis report.
Principal risks
The most significant business risks that Hilton Foods faces, together with the measures we have adopted to mitigate these risks, are outlined in the following tables. This is not intended to
constitute an exhaustive analysis of all risks faced by Hilton Foods, but rather to highlight those which are the most significant.
Hilton Food Group PLC Annual Report and Financial Statements 2024 27Overview
Strategic report
Governance
Financial statements
Additional information
Risk management and principal risks
continued
Risk 3
No movement
Description
Hilton Foods strategy focuses on a small number of customers who can exercise
significant buying power and influence when it comes to contractual renewal terms
at 1 to 15 year intervals.
Its potential impact
Although Hilton Foods has historically relied on a few, influential retailers for a larger part
of our revenue, this has diversified in recent years. The larger retail chains continue to focus
on strengthening their market share of protein products in the countries in which we
operate, creating an increasingly competitive retail environment. This has increased the
buying and negotiating power of our customers, which could enable them to seek better
terms over time.
During periods of unprecedented inflationary pressure, misalignment between
production costs and agreed operational packing rates may occur, potentially
impacting profitability.
Risk mitigation measures and strategies adopted
Hilton Foods is progressively widening its customer base, with the recent announcement
of a partnership with Walmart Canada bringing further diversification to the customer
portfolio. We maintain a high level of investment in state-of-the-art facilities, which
together with management’s continuous focus on reducing costs, allows us to operate
efficiently at high throughputs and price our products competitively.
Hilton Foods operates an entrepreneurial business structure, which enables us to work
very closely and flexibly with retail partners, in order to achieve high service levels in terms
of orders delivered, delivery times, compliance with product specifications and accuracy
ofdocumentation, all backed by an uncompromising focus on food safety, product
integrity and traceability assurance.
The Group maintains an ongoing focus on cost control, innovation and factory efficiency
tomanage inflationary pressures. Hilton Foods continues to evolve and respond to
changing market conditions.
The provision of added value services in distribution and logistics deepens the
relationships we have with our retailer partners. Our technology and services business
offers an industry-leading technology platform providing end-to-end supply chain and
integrated automation solutions. Investment in these services means that we are able
todevelop and maintain a technology advantage within our industry.
Risk 4
Upwards movement
Description
As Hilton Foods continues to grow, there is a risk that the people capabilities do not enable
the business to grow and change as is necessary. Recruiting, developing and engaging
our workforce is critical to executing our strategy and achieving business success. This risk
increases as the Group continues to expand through simultaneous growth projects with
aneed to ensure we have the right culture, skills, capability and capacity in our workforce
to execute the strategy.
Its potential impact
The Group may struggle to meet key strategic objectives and projects and grow in line
with the strategy of the business due to the following:
▶ Culture, diversity and employee engagement.
▶ Leadership development and talent management.
▶ Human capital management.
Risk mitigation measures and strategies adopted
The Group carefully manages its skilled resources including succession planning and
maintaining a talent pipeline. The Group is evolving its people capability balanced with
an appropriate management structure within the overall organisation. Hilton Foods
continues to invest in on-the-job training and career development, while recruiting
high quality new employees, as required to facilitate the Group’s ongoing growth.
Appointment of additional key resources and alignment of structures have supported the
enhancement of project management control and oversight. Control systems embedded
in project management enable the risks of growth to be appropriately highlighted and
managed. To underscore our efforts, we have active relationships with strong industry
experts across all areas of business growth.
In the current climate, strong partnership and proximity to our customers are
fundamental. Hilton Foods leadership continues to develop its organisational structures
toensure as close a relationship with our retail partners as possible.
Hilton Food Group PLC Annual Report and Financial Statements 2024 28Overview
Strategic report
Governance
Financial statements
Additional information
Risk management and principal risks
continued
Risk 5
No movement
Description
Hilton Foods business strength is affected by our ability to maintain a wide and flexible
global food supply base operating at standards that can continuously achieve the
specifications set by ourselves and our customers. Increasing volatility within the
upstream supply chain places additional pressure on our ability to source raw material.
Its potential impact
Hilton Foods is reliant on its upstream suppliers to provide sufficient volume of products,
to the agreed specifications, on time. The Group has both local and global sourcing
models and efficient supply chain management is a key business attribute. Current or
future tariffs, quotas or trade barriers imposed by supplier countries and other global trade
developments, could materially affect the Group’s international procurement ability and,
therefore, potentially impact our ability to meet agreed customer service levels.
Risk mitigation measures and strategies adopted
Hilton Foods maintains a flexible global and local food supply base, which is progressively
widening as it expands and is continuously audited to ensure standards are maintained,
providing a wide range of options should supply disruptions occur.
We have also developed partnerships with key strategic suppliers who share our
commitment to quality, food safety, animal welfare and sustainability.
We engage with our suppliers through our supplier management platform, Foods
Connected, where we track supply chain compliance, internal quality procedures and
manage the buying, planning and selling of our raw materials. We are implementing a
third party risk management platform to flag potential risk exposures relating to financial
and political sanctions, cyber security and ethical and sustainability related risks. We also
use media monitoring and horizon scanning for real time awareness of emerging supply
chain risks to provide further assurance through strengthening supply chain robustness
and transparency.
Further detail on supplier engagement can be found in the Stakeholder
Engagement section.
Risk 6
No movement
Description
Contamination within the supply chain including outbreaks of disease and feed
contaminants affecting livestock and fish.
Its potential impact
This will potentially affect Hilton Foods ability to procure sufficient quantities of safe
raw material.
Risk mitigation measures and strategies adopted
Hilton Foods sources its food from a trusted raw material supply base, all components
of which meet stringent national, international and customer standards. We are
subject to demanding standards, which are independently monitored in every country
and reliable product traceability and high welfare standards from the farm to the
consumer are integral to our business model. Full traceability from source to packed
product is ensured across our suppliers, supported by a comprehensive ongoing audit
programme. Within our factories, Global Food Safety Initiative (GFSI) benchmarked
food safety standards and our own factory standard assessments ensure that the risk of
contamination throughout the processing, packing and distribution stages is mitigated.
Hilton Food Group PLC Annual Report and Financial Statements 2024 29Overview
Strategic report
Governance
Financial statements
Additional information
Risk management and principal risks
continued
Risk 7
No movement
Description
Significant incidents such as fire, flood, pandemic, a breach of site security or interruption
of supply of key utilities could impact the Group’s business continuity.
Its potential impact
Such incidents could result in systems or manufacturing process stoppages with
consequent disruption and loss of efficiency, which could impact the Group’s sales.
Risk mitigation measures and strategies adopted
Hilton Foods has robust business continuity plans in place, including sister site support
protocols enabling other sites to step in with manufacturing and distribution of key
product lines where necessary. Continuity management systems and plans are suitably
maintained and adequately tested including building risk assessments and emergency
power solutions. Mitigation measures to ensure site security include prevention of
unauthorised access through biometrics and authentication measures, perimeter controls
and monitoring of access points. There are appropriate insurance arrangements in place
tomitigate against any associated financial loss.
Risk 8
Upwards movement
Description
Hilton Foods IT systems could be subject to cyber attacks, including ransomware and
fraudulent external email activity. Such attacks are rapidly increasing in frequency and
sophistication, especially with the progression of artificial intelligence.
Its potential impact
Hilton Foods operations are underpinned by a variety of IT systems. Loss or disruption
to those IT systems or extended times to recover data or functionality could disrupt our
operations and affect our sales and reputation.
Unauthorised access to systems, both within our own network and in our supply chains,
could lead to loss of sensitive information. The risk of cyber attack is exacerbated by
increasing geopolitical uncertainties.
Risk mitigation measures and strategies adopted
Our robust IT control framework, including our information security programme is
aligned with the National Institute of Standards and Technology (NIST) Cybersecurity
and ISO Frameworks. We proactively identify and assess vulnerabilities in our systems
through simulated attacks, annual penetration testing and weekly vulnerability scans.
Remediation procedures allow us to correct potential weaknesses promptly. Testing is
conducted by both internal staff and specialist external bodies. We continuously improve
our IT control framework, which is applied consistently throughout the business and
ensures that our defences remain resilient in the face of evolving cyber threats.
Our information security programme places a strong emphasis on incident reporting and
response. Employees are encouraged to promptly report any potential security incidents,
fostering a culture of transparency and accountability. In the event of an incident, our
response protocols enable us to swiftly and effectively contain, eradicate, and recover from
security breaches.
Cyber awareness training plays a vital role in empowering our workforce to recognise and
report potential incidents. Frequent testing and simulations help bolster the resilience
ofthe organisation.
The Board and Risk Management Committee are regularly updated on cyber security
risk and mitigations. IT risk is considered when assessing new ventures, new sites are
required to comply with our minimum standards and operating models. IT forms part
ofsite business continuity exercises, which test and help develop the capacity to respond
topossible crises or incidents. Regular IT security reviews ensure compliance with
expected levels of updates to applications, servers and data centres.
Hilton Food Group PLC Annual Report and Financial Statements 2024 30Overview
Strategic report
Governance
Financial statements
Additional information
Risk management and principal risks
continued
Risk 9
Upwards movement
Description
A significant breach of health and safety resulting in any harm to people from negligence
or management oversight. The complexity of this risk increases as the Group expands
both geographically and into new product groups.
Its potential impact
Failure to maintain appropriate health and safety across the Group could result in
significant harm or fatality leading to a reputational, regulatory and/or financial impact
onour business.
Risk mitigation measures and strategies adopted
The safety and health of our employees is the number one priority for the business.
Hilton Foods has established robust health and safety processes and procedures across
its operations, including a Group oversight function, which provides key guidance and
support necessary to strengthen monitoring, best practice and compliance. The Group
has also rolled out an enhanced standardised safety framework. Health and safety
performance is reviewed at every meeting by the Board. We are in the process of rolling
out a health and safety auditing platform to support the strengthening of our current
health and safety framework.
Risk 10
No movement
Description
Hilton Foods business and supply chain is affected by climate change risks comprising
both physical and transition risks. Physical risks include long-term rises in temperature
and sea levels as well as changes to the frequency and severity of extreme weather
events. Transition risks include policy changes, reputational impacts, and shifts in market
preferences and technology.
Its potential impact
Potential physical impacts from climate change could include a higher incidence of
extreme weather events such as flooding, drought and forest fires that could disrupt
our supply chains and potentially impact production capabilities, increase costs and add
complexity. Action taken by societies could reduce the severity of these impacts.
Governmental efforts to mitigate climate change may lead to policy and regulatory
changes as well as shifts in consumer demand. The potential transitional impacts include
additional costs of low greenhouse gas emission farming systems, and the potential of
carbon price regulation aimed at shifting consumers to lower-carbon foods, which may
reduce the profitability of some of our products. Additionally, is increased stakeholder
focus on climate change issues. Our reputation could be impacted if we are not active
in reducing the climate impacts of our operations and supply chains, resulting in lower
demand for our products.
Risk mitigation measures and strategies adopted
We continue to develop our approach to climate change risk mitigation. We have
submitted more ambitious science-based targets across Scope 1, 2 and 3 emissions
aligned to the 1.5°C pathway, to decarbonise our own operations and supply chains.
We have set energy and water efficiency targets for our sites and continue to engage
inglobal collaborative action for decarbonisation of our key raw materials. We have targets
in place to deliver net zero emissions from our operations and supply chain before 2050.
Shifts in consumer demand are an opportunity for growth in our portfolio of plant-based
and seafood products. Additionally, we are ensuring we have the flexibility to adapt our
supply chains over time to mitigate physical disruption.
We continue to review and develop our assessment of the key physical and transition risks
impacting our business in line with the Task Force on Climate-related Financial Disclosures
(TCFD) recommendations. Our full assessment of climate risks and opportunities in line
with the TCFD framework is described within the Sustainability section of this report.
Hilton Food Group PLC Annual Report and Financial Statements 2024 31Overview
Strategic report
Governance
Financial statements
Additional information
Stakeholder engagement (Section 172)
Our people are at the heart of our success and the delivery of our strategy. A business that
is built around people needs to help every colleague develop to the best of their potential.
Our people
Why we engage
Our people are at the heart of our
success and ensuring their health and
safety, wellbeing and fair treatment is
essential to the delivery of our strategy.
With over 7,500 employees across
20 markets, our business is built around
our people and helping every colleague
develop to the best of their potential.
Areas of focus for our stakeholders
▶ Health and safety
▶ Engagement
▶ Recognition and reward
▶ Opportunity for skills and
career development
▶ Wellbeing
▶ Equity and respect
Further detail on how we engage with our
peoplecan be found on pages 48 to 52.
Engagement: What we learned and our actions
▶ Health and Safety:
What we learned: A proactive approach to health and safety significantly reduces risks.
Our actions: We developed a Global Health and Safety framework to minimise risks and
raise awareness. We ran campaigns across the business to promote safe behaviour.
We have safety programmes at all sites to ensure a safe environment is maintained
at all times and working groups to deliver on health and safety initiatives such as the
development of an image-based safety guide for all our colleagues.
▶ Mental Health and Wellbeing:
What we learned: Maintaining employee wellbeing is crucial for a healthy and
supportive workplace.
Our actions: We enhanced access to mental health services across the company and
introduced mental health first aiders at every site. We ran initiatives like the ‘It’s OK not
to be OK’ campaign at Fairfax Meadow, to encourage openness around mental health.
Our Inclusion Network delivered webinars focused on discussing relevant issues, such
aswellbeing and reducing stress.
▶ Diversity and Inclusion:
What we learned: Creating an inclusive workplace helps everyone reach their full potential.
Our actions: In 2024, we rebranded our Inclusion Network to support more employees.
We also partnered with Meat Business Women to offer mentorship programmes and
workshops aimed at empowering women. As a result, in 2024, 34% of senior leadership
roleswere held by women, highlighting our commitment to professional growth for all.
▶ Training and Development:
What we learned: Continuous development leads to more engaged, skilled employees
whocan drive business success.
Our actions: We rolled out our Learning Academy, now available at multiple sites, providing
tailored development opportunities. We expanded our Manufacturing Excellence
Programme, which launched in Australia after strong results in 2024. TheEmerging Leaders
Programme nurtured 190 high-potential employees, with 51% of participants being women.
▶ Investing in the Next Generation:
What we learned: Fresh perspectives bring innovation and positive change.
Our actions: We launched the APAC Internship Programme in 2024, giving young talent
exposure to different departments. Building on this success, we are launching the Graduate
Scheme at our Huntingdon Head Office in September 2025 to develop the next generation
of leaders. We are building a more engaged, diverse, and capable workforce at Hilton Foods,
and we remain committed to continuous improvement in these areas.
How the Board has oversight
The Board understands its employees
are the driving force behind the
long-term sustainable success of Hilton
Foods. Sarah Perry is the designated
H&S champion for the Board and H&S
isdiscussed at every Board meeting first.
There are deep-dive reviews and the Board
members participate in H&S training.
The Directors engage with employees
tounderstand their priorities and concerns,
and to identify and develop talent within
the Group. The Board oversees the
continued investment and prioritisation
of employee training and development.
Angus Porter is the designated
Non-Executive Director for workforce
engagement. He works closely with
colleagues to oversee our employee
engagement practices and reports back
to the Board on his findings. He also has
regular meetings with our Chief People
and Culture Officer and is engaged
in the development of the employee
engagement survey.
All reports to our whistleblower service are
reviewed by the Board.
The Board travelled to our Hilton Foods
Sweden and Fairfax Meadow sites in 2024
where they had the opportunity to meet
with employees. Directors also participate
in the Hilton Foods Leadership conference.
Townhall meetings were held at all Hilton
Foods sites in 2024 and attended by
members of the Executive Leadership
Team to update colleagues on Group
strategy and provide engagement
opportunities through Q&A sessions.
Hilton Food Group PLC Annual Report and Financial Statements 2024 32Overview
Strategic report
Governance
Financial statements
Additional information
Stakeholder engagement (Section 172)
continued
Our communities
Why we engage
Our communities play a vital role within
our business. We believe in building a
fairer society and food system for all and
seek to be a good neighbour in all of
our locations.
Areas of focus for our stakeholders
▶ Sustainability
▶ Social value
▶ Opportunities and careers
forlocal people
More detail available in our Sustainability Report
on pages 37 to 81.
Engagement: What we learned and our actions
▶ Global Heart, Local Response:
What we learned: Different causes resonate with our colleagues, and contributing
to the community creates a sense of shared purpose.
Our actions: In 2024, we raised over £130,000 through global charitable initiatives and
fundraising efforts. We prioritise local charities that matter to our colleagues and the
communities they live in. For instance, our colleagues in Ireland collected goods during
Christmas to donate to local homeless centres and women’s refuges. This reflects our
commitment to making a positive impact wherever we operate.
▶ Reducing Waste and Supporting Local Communities:
What we learned: Addressing food waste is key to supporting both the environment and
local communities.
Our actions: Hilton Foods Seachill UK has partnered with The Rock Foundation, a local food
bank charity, to provide meals to those in need. So far, we have donated over 30,000 meals
for the Grimsby community.
▶ Engaging the Next Generation:
What we learned: Educating young people about healthy food options and the food sector
fosters future interest and awareness.
Our actions: At Hilton Foods Central Europe, we partnered with a local school to host
interactive cooking workshops. Through hands-on activities, students learned practical
cooking skills, explored nutritious meal options, and gained insights into food production.
The overwhelmingly positive feedback showed that we were able to inspire and educate
thenext generation about food and nutrition.
▶ Innovating Packaging to Tackle Waste:
What we learned: Packaging innovation plays a critical role in reducing food waste and
improving sustainability.
Our actions: In 2024, we collaborated with strategic partners to implement a circular
economy for packaging. We adopted Flowrap packaging over traditional MAP, reducing
plastic usage by over 70% and extending product shelf life. This innovation supports our
ongoing efforts to reduce waste and minimise our environmental footprint.
▶ Respecting Human Rights:
What we learned: Understanding and addressing human rights risks in our value chain is
ofthe upmost priority to Hilton Foods and is essential to supporting thriving communities.
Our actions: We remain aligned with the UN Guiding Principles on Business and Human
Rights. In 2024, we conducted a comprehensive human rights risk assessment through
detailed data collection and analysis, as outlined in the GRI section of the Sustainability
Report. We also reviewed and strengthened our modern slavery risk management practices
to ensure fair and respectful treatment of workers throughout our value chain.
How the Board has oversight
The Board has overseen the integration
of our Human Rights Policy into our
core business functions through the
implementation of Our Global Supplier
Social Responsibility Code of Conduct
Compliance Requirements.
The Directors participate in Human Rights
training to understand how best to support
our colleagues, communities and the
workers in our value chain. They also receive
updates on the outputs and progress from
our supply chain transparency platform
tomonitor labour standards.
The Board works to build relationships with
our communities and legitimate public
interest groups.
The Board is kept informed of our
engagement with our local communities
through regular updates from the
Sustainability Committee and from
local sites.
Hilton Food Group PLC Annual Report and Financial Statements 2024 33Overview
Strategic report
Governance
Financial statements
Additional information
Stakeholder engagement (Section 172)
continued
Our customers
and consumers
Why we engage
Our customers and consumers are at the
heart of our business and they expect us
to produce products of the highest food
safety and quality. We focus on helping
consumers make ethical and sustainable
choices for both their health and the
health of the planet.
Areas of focus for our stakeholders
▶ Product quality
▶ Product sustainability
▶ Social responsibility
▶ Healthy and balanced diets
See pages 40 to 42 for more detail
on our Sustainable Protein Plan.
Engagement: What we learned and our actions
▶ Product Innovation – Affordable, Healthy and Sustainable:
What we learned: Our consumers desire food that is affordable, healthy and sustainable,
without having to compromise on their expectations due to rising living costs.
Our actions: We focus on innovation to deliver cost-effective food options, enabling
consumers to make healthy, sustainable choices despite living costs. We benchmark all our
products against nutritional standards and have reformulated recipes to reduce salt and fat,
while increasing fibre content. In 2024, Hilton Foods Holland launched an affordable range
of blended chicken and beef mince products, which improved the NutriScore rating from D
to C, and reduced CO
2
emissions by 40% compared to traditional 100% beef products.
▶ Product Range and Quality:
What we learned: Through consumer insights, we discovered a growing trend in the
demand for slow-cooked products. Consumers are increasingly seeking convenient options
that provide a full-flavour experience without the time and effort typically associated with
traditional slow cooking methods.
Our actions: In response, our UK and Ireland teams worked together to create a range
ofslow-cooked meat products for the Irish market that cater to consumer preferences for
ease and flavour. In the UK, we collaborated with Tesco to launch the Steakhouse range
ofpremium, restaurant-quality products at home. The range has received positive feedback,
strengthening our relationship with Tesco and supporting them in winning new customers.
▶ Building Expertise to Drive Innovation and Optimise Operations:
What we learned: To make a positive impact at key stages in the food supply chain, we must
develop our expertise as a supply chain partner, focusing on driving product innovation,
optimising operations, and reducing risks.
Our actions: In 2024, we collaborated with Woolworths in Australia and New Zealand to
improve availability, service levels, and product range. This partnership resulted in the launch
of 49 new products, achieved through better planning, forecasting, and innovation. As a
result, Hilton Foods APAC received the Woolworths 2024 Meat and Seafood Trade Partners
ofthe Year award in both territories. We are now better positioned to meet the evolving
needs of our customers.
▶ Advancing Sustainability:
What we learned: Our customers and consumers are placing greater importance on
sustainability, and it is crucial that we align with these values to meet evolving expectations
and ensure long-term success.
Our actions: We are committed to having responsible, eco-friendly practices that meet
the expectations of our customers and consumers. In 2024, we improved water efficiency
across our factories by 10% compared to a 2020 baseline. We updated our science-based
targets and Group Transition Plan, outlining clear steps to achieve a 95% reduction in direct
emissions by 2030. Additionally, our Fairfax Meadow site introduced electric vans, marking
the first step towards electrifying our entire fleet.
How the Board has oversight
Understanding what is important to our
customers and consumers is essential to
our business strategy, so the Board receives
regular updates on market developments,
trends and opportunities. These are
reported to the Board by the Executive
Leadership Team through reports,
presentations and site visits.
The Board oversees Hilton Foods
commitment to integrity, health, and
sustainability, while ensuring that we
continue to meet the evolving needs of our
customers, consumers and the planet.
The Board also receives updates on
Hilton Foods customer and consumer
engagement on relating to sustainability
and risk management topics via the
Sustainability and Risk Committees.
Hilton Food Group PLC Annual Report and Financial Statements 2024 34Overview
Strategic report
Governance
Financial statements
Additional information
Stakeholder engagement (Section 172)
continued
Our suppliers
Why we engage
Our integrated food supply chain enables
us to deliver consumer and customer
expectations supported by the supply
of high quality, safe, sustainable and
innovative raw materials.
Areas of focus for our stakeholders
▶ Quality
▶ Continuous improvement
▶ Partnership
▶ Transparency and efficiency
Further details on how we engage with suppliers
can be found in the Sustainability report.
Engagement: What we learned and our actions
▶ Leveraging Data for Supply Chain Excellence:
What we learned: Data-driven insights are crucial for optimising the entire supply chain,
from farm to fork, and addressing key challenges effectively.
Our actions: Foods Connected, provides a software platform to map and assess supply chain
challenges, allowing us to work collaboratively across the value chain to manage supplier
performance and align with both our own and our customers’ priorities. Further projects are
planned to strengthen our supply chain operations and the sustainability of our value chain.
▶ Animal Welfare:
What we learned: Ensuring high standards of animal welfare is vital to maintaining trust
and meeting customer expectations for sustainable practices. We recognise the growing
scientific evidence that crustaceans are sentient and can experience pain and suffering.
Reflecting new learnings in animal welfare in our policies can only be achieved through
working collaboratively throughout our value chain.
Our actions: We are committed to upholding the highest animal welfare standards through
our Animal Welfare Policy, which is integral to our business values. We employ a team of
trained auditors who conduct audits of our supply base. We conduct bespoke animal welfare
training to ensure animal welfare practices are followed throughout the entire value chain.
In 2024, we developed and published a Crustacean Policy with the Aquatic Life Institute
recognising crustaceans as sentient beings, and we are working closely with our suppliers
toimplement, strengthening relationships with our suppliers who share our commitment
toethical and sustainable practices.
▶ Supplier Social Responsibility Code of Conduct
What we learned: We recognise the risk of third-party labour exploitation and the
importance of strengthening systems to prevent modern slavery in our supply chain.
We reinforced our commitment to integrating ethical labour standards across all aspects
of our business, particularly within our global supply chain. Our learnings highlighted
that effective human rights due diligence goes beyond just audits, it requires continuous
monitoring, deeper insights, and proactive engagement with suppliers.
Our actions: We aligned our Human Rights Policy with our Supplier Social Responsibility
Code of Conduct, ensuring due diligence is part of the supplier approval process. In 2024,
we conducted a saliency assessment to identify areas where we need to enhance our due
diligence efforts. Our ethical compliance process serves as the first step in our broader
human rights due diligence, emphasising the need to go beyond audits and take a proactive
approach to improving practices across our supply chain. We have now included human
rights and labour risks in our supplier approval process, and we use Sedex, an internationally
recognised platform, to monitor labour standards and gain insights into working conditions
at supplier sites.
How the Board has oversight
The Board and senior management
engage with our suppliers through our
established total partnership strategy.
We have regular dialogue with suppliers
onproduct quality and payment terms.
The Board and senior management
collaborate with suppliers to address
any concerns, to identify supply chain
risks and work together to find solutions,
mitigaterisks and demonstrate
best practice.
The Board is updated on supply chain
risks, initiatives and opportunities
through regional updates and reports
from the Risk Management and
Sustainability Committees.
Hilton Food Group PLC Annual Report and Financial Statements 2024 35Overview
Strategic report
Governance
Financial statements
Additional information
Stakeholder engagement (Section 172)
continued
Our shareholders
Why we engage
We focus on building shareholder
relationships through our strategic
engagement plan, based on the principle
of continuous engagement, to help us
secure ongoing investment and support.
By clearly communicating our purpose,
strategy, performance and outlook, we
ensure shareholders are well-informed,
enabling them to make decisions based
on a thorough understanding of our
business and its direction. We share
factual, clear and balanced information to
foster transparency and trust.
Areas of focus for our stakeholders
▶ Business performance
▶ Forecast and outlook
▶ Strategy and strategic priorities
▶ Business model and value chain
▶ Expertise that delivers our
competitive advantage
▶ ESG
▶ Medium-term financial guardrails
and ambitions
▶ Strategic capital allocation
▶ Remuneration
The Board’s current assessment of the Group’s
position and prospects are set out in the Strategic
report on pages 07 to 81.
Engagement: What we learned and our actions
▶ Regulatory News, Press Releases and Reports
What we learned: Ongoing updates are vital for keeping our investors informed about
business performance, new partnerships and strategic initiatives.
Our actions: We update our shareholders in a number of ways including through trading
updates, regulatory news service announcements and relevant articles in the financial
press. These updates are actively used to inform investors on our business and financial
performance, as well as key strategic and governance developments.
▶ Annual and Interim Reports, and Investor Presentations
What we learned: Providing accessible, live investor presentations on annual and half-year
results is essential for fostering the transparency and engagement that our investors expect.
Our actions: We deliver twice-yearly investor presentations on our results, webcast live, with
recordings and supporting slides made available on our corporate website for easy access.
▶ Shareholder Engagement – Visits, Meetings and the AGM
What we learned: Face-to-face engagement opportunities, such as facility visits, Capital
Markets Events, investor conferences, the AGM and other complimentary engagement
activities are important for building stronger relationships with our shareholders and
ensuring open communication between the Board and stakeholders.
Our actions: In 2024, we attended a strategic programme of investor conferences, hosted
a capital markets breakfast event and hosted investors and analysts for one-to-one and
smaller group meetings at our facilities in the UK and Sweden. At these events we updated
shareholders and analysts on our progress versus our strategic priorities and outlook,
shared key business activities and welcomed a Q&A. These events also offered access to key
members of the wider leadership team. A further Capital Markets Event is planned for 2025.
At the AGM, we provide all shareholders with the opportunity to ask questions, with
all Directors and the Chair of each Board Committee in attendance to respond.
Following feedback from shareholders that they would like a more personal and interactive
AGM experience, our 2025 AGM will be held in person and all shareholders are encouraged
to register their attendance in advance so we can ensure to be able to accommodate them
on the day.
▶ Interface, Accessibility and Governance
What we learned: It is important for shareholders to have access to senior leadership roles
and clear governance channels to enable effective communication and engagement with
major shareholders.
Our actions: We have a senior role focused on investor relations, enabling direct
communication with shareholders. Committee Chairs, including the Remuneration
Committee Chair, meet with shareholders and analysts to address questions. The Company
Secretary is a key point of contact for shareholder communications, particularly around
governance and meetings. We also receive shareholder feedback via our brokers. In 2025,
wehave started to undertake an independent review of investor perception with a selection
of our current shareholders which will inform how we evolve our strategic approach in 2026.
How the Board has oversight
The Board fosters open communication
with shareholders. The CEO and CFO,
supported by the Investor Relations
Director, engage in regular discussions
with shareholders and analysts to review
the Group’s performance, future prospects,
and gather insights into shareholder views.
These insights are then communicated
back to the Board.
Shareholders and analysts have direct
access to the Board as requested
via face-to-face and video meetings
with the Executive Directors, where
they get the opportunity to discuss
strategy, governance, performance and
outlook. Alongside the Chair and Senior
Independent Director, they are committed
to listening to any concerns shareholders
may have, particularly if issues have not
been resolved in prior meetings or were
deemed inappropriate to address earlier.
The Board are updated on shareholder
engagement at every Board meeting.
Hilton Food Group PLC Annual Report and Financial Statements 2024 36Overview
Strategic report
Governance
Financial statements
Additional information