Interim Results.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/204 (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018) and has been authorised for release by Robin Miller Group General Counsel and Company Secretary

3 September 2026

Hilton Food Group plc Interim Results

for the 26 weeks to 28 June 2026

·    Good performance from core meat and fresh prepared food, but Foppen weakness. Adjusted PBT³ from continuing operations of £32.8m, down 5.2% vs H1 2025 but ahead of expectations.

·    Full year adjusted PBT³ from continuing operations expected to be in the range of £66m-£71m, up from the previous range of £60m-£65m reflecting removal of Dalco losses and favourable FX.

·    Strategic progress continues: Dalco sale agreed; Seachill improvement plans gaining traction; Saudi Arabia JV facility on track for Q4 launch; Canada facility set for launch in January 2027.

Mark Allen OBE, Hilton Foods Chief Executive:

"This has been a period of encouraging progress across the Group. Having set out the conclusions of our strategic review earlier this year, we continue to innovate and deliver for our customers. We delivered good overall trading performance in meat and fresh prepared food, and we continue to drive opportunities to maximise performance and growth from our core operations. While performance in Foppen has been disappointing, we are beginning to see the positive impact of our improvement plans at Seachill in the UK. The agreed sale of Dalco is a step towards simplifying our portfolio.   

"Our growth investments in Saudi Arabia and Canada are expected to contribute to earnings from 2027. We also continue to develop plans to deliver material capacity expansion for fresh prepared food in Poland.

"Our first half progress gives us confidence in our 2026 profit outlook. Longer-term, it is the commitment of colleagues, the strength of our customer relationships and leadership in red meat which will continue to underpin our medium-term growth objectives."  

Financial summary

Notes

1    Volume includes 50% share of the Portuguese joint venture activities.

2    Continuing operations exclude Fairfax Meadow (which was sold in September 2025) and Dalco (which is held for sale).

3    Hilton Foods uses Alternative Performance Measures (APMs) to monitor the underlying performance of the Group which are detailed in note 18 and the Glossary. Management considers that APMs, in addition to statutory metrics, provide useful information on business performance which enables management to monitor and manage the business day-to-day.

Financial performance

·   Volumes from continuing operations up 2.1%, with good overall performance from core meat businesses and further growth in fresh prepared food in Central Europe.

·   Revenue from continuing operations up 11.5% on a constant currency basis, reflecting higher average raw material prices.

·   Adjusted profit before tax (PBT) from continuing operations of £32.8m, down 8.9% on a constant currency basis compared to the prior period.

o  Higher adjusted PBT overall from core meat and fresh prepared food businesses.

o  Lower seafood adjusted PBT predominantly reflecting margin pressures in Foppen.

·   Statutory PBT from continuing operations of £11.8m includes adjusting/exceptional items of £21.0m, predominantly relating to costs in Foppen of ongoing regulatory restrictions on exports from Greece to the United States, and Group reorganisation/restructuring costs and transformation costs. Total PBT including discontinued operations also includes a £16.7m non-cash impairment charge relating to the agreed sale of Dalco.

·   Adjusted basic EPS from continuing operations of 25.7p, down 12.7% on a constant currency basis. Statutory basic EPS from continuing operations of 7.7p (H1 2025: 22.1p).

·   Adjusted free cash flow of £10.4m (H1 2025: outflow of £30.8m) includes typical H1 seasonal working capital outflow. Total capex was £45.3m, including continuing spend on Canada and Saudi Arabia growth projects.

·   Net bank debt of £194.4m (H1 2025: £202.4m; FY 2025: £126.7m).

·   The Board has approved a 2026 interim dividend of 10.1p, unchanged from the 2025 interim dividend.

Progress against our three strategic growth levers

·   Maximising the core

·    Core capex investment focused on further automation and modernisation to drive efficiency, with yield benefits from use of our line control AI technology in the UK.

·    Extended commercial partnership with Tesco in the UK from Q2 2026. Follows agreement of new contracts with Albert Heijn in the Netherlands and Coop and Salling in Denmark in late 2025.

·   Enhancing the mix

·    Agreed the sale of Dalco, our vegan and vegetarian business, which is aligned to our strategy to focus our investment on and drive growth from our core meat and fresh prepared food businesses.

·    Seachill performance improvement plans expected to have a positive impact in H2 2026.

·    26% growth in fresh prepared food volumes in Central Europe. Full scoping of project to materially expand capacity in Poland expected to be completed around the end of 2026.

·   Expanding geographically

·    Facility in Canada set for launch in January 2027 with ramp up of beef, pork and fish in H1 2027. Bacon now planned to be added to the scope and expected to be live later in 2027.

·    Saudi Arabia JV facility expected to be operational in Q4 2026.

·    Both projects are expected to contribute to earnings from 2027.

Outlook

First half trading in our core meat and fresh prepared food business was good overall. In addition, while performance from Foppen was disappointing, our plans in Seachill to improve performance through operational initiatives and cost reduction are expected to have a positive impact in H2.

We now expect full year adjusted profit before tax from continuing operations in the range £66m-£71m. This is higher than the previous range of £60m-£65m, despite ongoing challenges in Foppen, and reflects the removal of Dalco losses and favourable year-on-year foreign currency movements. We remain mindful of the potential impact of continuing high levels of raw material prices and the wider economic environment. However, the increase in core meat volumes in the first half demonstrates the resilience of our geographically diverse business model.

Capital expenditure is still expected to be around £100m in 2026. This includes core capital expenditure around the lower end of the previously guided £50m-£55m range and the final year of material spend on our new facility in Canada. Material capex on planned capacity expansion in Poland is not expected to occur until 2027.

As previously guided, net bank debt is expected to increase over the year because of this elevated level of capex. In addition, we have taken the decision to purchase additional frozen inventory in the UK in H2 2026, to ensure we meet seasonal demand at Christmas 2026 and Easter 2027. However, net debt at the end of 2026 is still expected to remain comfortably within our targeted net debt/adjusted EBITDA range of 1-2x.

We remain positive on the medium-term outlook for the Group. Our projects in Canada and Saudi Arabia are expected to contribute to earnings from 2027 and, further out, the planned expansion of capacity in Poland will allow us to drive continued momentum within our fresh prepared food business. We will also continue our focus on maximising the contribution from our existing market-leading core meat positions. We remain confident in the delivery of our medium-term targets of mid-single digit operating profit growth, cash conversion of around 100% on average and average Group return on capital employed of above 20%.

Analyst and investor call

A call for analysts and investors will be held on Thursday 3 September at 09.00am (UK time). For access to the live audio webcast, please register at the following link: https://brrmedia.news/HFG_HY26

Enquiries

Hilton Foods                                                                  Tel: +44 (0) 1480 387214

Mark Allen OBE, Group Chief Executive                         email: investorrelations@hiltonfoods.com

Matt Osborne, Chief Financial Officer

Martyn Espley, Investor Relations Director

Headland Consultancy Limited                                   Tel: +44 (0) 20 3805 4822

Ed Young                                                                         Email: hiltonfood@headlandconsultancy.com

Will Smith

About Hilton Foods

Hilton Foods is the global partner of choice, built on world class red meat capabilities. Our focus is on supplying high-quality, affordable food products to the heart of the home in partnership with leading grocery retailers. The Company delivers high-quality, affordable and sustainable products through efficient, automated facilities, with a strong focus on innovation and new product development.

We employ over 7,400 employees and operate 21 state-of-the-art facilities (including JVs) and drive growth through maximising the core, enhancing the mix and expanding geographically. We serve customers in 21 markets across Europe, Asia Pacific and North America. Our business is built on long-term partnerships with retailers, suppliers and colleagues which helps drive international growth and create shared value.

Business Review

Overview

Hilton Foods delivered good overall performance in our core and fresh prepared food businesses in the first half of 2026, although conditions remained challenging for the seafood businesses. Volumes from continuing operations were up 2.1%, highlighting the strength of our customer partnerships. Against a backdrop of higher raw material prices, revenue from continuing operations was up 11.5% on a constant currency basis. Principally reflecting ongoing challenges in Foppen, adjusted profit before tax from continuing operations was down, by 8.9% on a constant currency basis to £32.8m.

Statutory profit before tax from continuing operations was £11.8m. It included further exceptional costs related to Foppen, with ongoing regulatory restrictions on exports from Greece to the United States. It also included restructuring, reorganisation and transformation costs across the Group. In addition, we recognised a £16.7m impairment on Dalco, which is now classified as a discontinued operation following the announcement in July 2026 that we had agreed to sell the business. This is in line with our strategy to focus investment on and drive growth from our core meat and fresh prepared food businesses, while seeking to improve performance and maximise value from our seafood, vegan and vegetarian businesses.

We made good progress in driving core operational improvements across our sites while maintaining our focus on innovation to deliver value for our customers. We also continue to invest in attractive projects that will underpin the future growth of Hilton Foods. Our joint venture in Saudi Arabia is expected to become operational in Q4 2026, and our facility in Canada is on track to launch in January 2027. In addition, we expect to complete full scoping of our project to expand capacity in Poland by the end of this year, with customer demand signalling the potential for a bigger expansion than originally envisaged. 

Our performance and progress in the first half of the year gives us confidence in the full year outlook. We now expect to achieve 2026 adjusted profit before tax from continuing operations in the range £66m-£71m, higher than previous guidance reflecting the removal of Dalco losses and favourable foreign exchange movements. Our sharper strategic focus, alongside a continued disciplined approach to investment and shareholder returns leaves Hilton Foods well placed to deliver long-term sustainable growth.

Regional performance

Having announced a new organisational structure in January 2026 to increase operational focus, the Group now reports under two reportable operating segments:

·      East: This operating segment covers three Australian processing facilities at Bunbury in Western Australia, Melbourne and Brisbane, a multi-protein food park facility in Auckland, New Zealand and the Group's meat and fresh prepared food facilities in Poland covering Central Europe. It also includes the Saudi Arabia joint venture.

·      West: This operating segment covers meat processing facilities in the UK, Ireland, Netherlands, Sweden, Denmark and our joint venture in Portugal. It also covers Seachill, the Group's UK seafood business, and Foppen, its smoked salmon business operating in the Netherlands and Greece. In addition, the Group's Canada operations are included in this segment, with its new facility expected to become operational in 2027.

Continuing operations exclude Fairfax Meadow (which was sold in September 2025) and Dalco (which is held for sale).

East

Total East volumes were up 3.2%, with volume growth in each of Central Europe, Australia and New Zealand. Growth was particularly strong in Central Europe fresh prepared food, where volumes were up 26%. Revenue was up 15.3% on a constant currency basis (up 21.6% on a reported basis which includes the impact of a stronger Australian dollar over the period), with materially higher Australian beef prices being the main driver.

Reflecting the volume growth, particularly in higher margin fresh prepared food, adjusted operating profit of £24.9m was up 17.7% on a constant currency basis (22.7% on a reported basis). Adjusted operating profit margin increased slightly to 2.5% (H1 2025: 2.4%), with the positive impact of growth in Central Europe offsetting slightly lower margins in Australia and New Zealand reflecting the c/kg nature of the retailer agreements in those markets.

West

Total West volumes from continuing operations were up 1.1%, with core meat volumes up 0.6%. We delivered good growth in Denmark and Sweden, including from our new frozen burger product line. In the UK, we extended our commercial partnership with Tesco in H1 2026. We have gained some lamb volume, but as part of Tesco's commitment to achieve a fully Scottish beef supply chain, we no longer supply beef to Tesco in Scotland. This was a factor in lower volumes from the UK. Netherlands volumes were also lower, with continued low levels of promotional activity. Seafood volumes were up 6.0%. This included good customer demand for our Foppen smoked salmon products, and increased sales of salmon and prawns in Seachill which helped offset continued weak demand for white fish.

Revenue from continuing operations was up 8.7% on a constant currency basis (10.6% on a reported basis), which reflects the impact of increases in raw material prices over the past 18 months. 

Adjusted operating profit from continuing operations of £28.0m was down 21.8% on a constant currency basis (down 20.5% on a reported basis). Core meat adjusted operating profit was down 8.4% on a constant currency basis, which includes the impact of competitive pressures in Ireland and unfavourable mix movements in the UK. In response we are working with our customers to deliver targeted promotions in H2 2026, while constantly reviewing our cost base against current volumes. Seafood moved from a £2.8m adjusted operating profit in the first half of 2025 to a £2.2m adjusted operating loss in the first half of 2026, largely reflecting the impact of compressed margins in Foppen due to unfavourable currency and raw material price movements.

Regulatory restrictions remain in place on exports to the United States from our Foppen facility in Greece. Reflecting this, and the loss of inventory following an unrelated fire at a third-party warehouse, we recognised total Foppen-related exceptional costs of £7.0m in H1 2026. We continue to work closely with the United States Food and Drug Administration (FDA) as we await clarity on the potential restart of exports from Greece.

Reflecting the lower profit, total West adjusted operating profit margin from continuing operations was 2.2%
(H1 2025: 3.1%), and from core meat it was 2.8% (H1 2025: 3.4%).

Strategic progress

We have made good progress following the announcement of our strategic review alongside the 2025 Preliminary Results on 31 March 2026.

The review confirmed that Hilton Foods enters the next phase of its development from a position of structural strength. We have long-term partnerships with leading international retailers and a scaled and efficient red meat platform with well invested facilities. This is not easy for others to replicate. We have proven capability to enter new markets with new and existing partners through geographic expansion. We also have great people who drive the business forward each day. Ensuring their safety and wellbeing is critical, and their voices are crucial to the success of the business.

As part of the strategic review, we identified three levers of future growth. These were to maximise the core, enhance the mix, and expand geographically.

Maximise the Core

We continue to invest in our state-of-the-art facilities to support our growth, extend the range of products supplied to our customers and deliver both first class service levels and further increases in production efficiency. We have now implemented our line control technology into our UK facility in Huntingdon, which utilises machine learning to regulate pack weights and minimise waste. This has generated yield benefits and we are now looking to implement this technology into other sites.

We continue to work with our retail partners to develop new targeted product ranges that respond to the wider economic environment and changing customer trends. In the first half of the year, we introduced mixed protein mince which comes with a lower price point in Denmark and the Netherlands. We also delivered a 6% increase in sous-vide volumes in the UK. This remains an interesting area for potential future growth.

We continue to seek new commercial opportunities. We are now supplying 13 stores in the South Island in New Zealand as part of a trial with our retail partner, extending our footprint beyond the North Island. We plan a full roll-out in H2 2026. In addition, having invested in frozen burger lines in Sweden in 2025, we have started supplying Burger King in addition to meeting demand from ICA.

Enhance the mix

Optimise the portfolio

Having positioned our seafood, vegan and vegetarian businesses under separate dedicated leadership earlier this year, we have been limiting investment and focused on implementing and executing improvement plans. This is aimed at maximising value and improving strategic optionality, to reduce volatility of earnings and deliver higher returns for the Group. We have made good initial progress.

In July 2026 we agreed to sell Dalco to Livekindly Production NL B.V. for total consideration of £5.4m. This is aligned with our strategy to focus our investment on and drive growth from our core meat and fresh prepared food businesses. The transaction resulted in a non-cash impairment charge of £16.7m. Completion remains subject to standard approvals and deliverables, including consultation with the local works council, and is expected to occur in Q4 2026. Dalco made an adjusted operating loss of £2.0m in H1 2026.

In Seachill, we have been implementing a number of initiatives to improve performance, including driving operational improvements to increase yields. We also continue to focus on cost reduction, including removing management layers and restructuring departments to optimise the business for current market conditions. We expect these initiatives to have a positive effect on operating profit in H2 2026.

In Foppen, we remain focused on improving commercial performance, especially given a poor first half financial result. We also continue to drive operational efficiencies as we await clarity from the FDA on the restart of exports to the United States from our facility in Greece. We are assessing all options for the future of this business. 

Driving fresh prepared food growth

Within our higher margin fresh prepared food categories, we have implemented near-term capital-light plans to meet growing demand in Central Europe. We also continue to develop plans to materially increase capacity and upgrade facilities at our site in Poland, which would allow us to further accelerate growth. Full scoping of this project is expected to be completed by around the end of 2026, with the potential for the project to be bigger than originally envisaged given our largest fresh prepared food customer's growth ambitions. Subject to suitable project returns in line with our capital allocation framework, capital expenditure could start in 2027, and operations could commence as early as the back end of 2028.

Expand geographically

Both our existing major geographical expansion projects are on track to contribute to Group earnings from 2027 and provide us with long-term growth and expansion opportunities.

Our facility in Saudi Arabia, built through a joint venture partnership with The National Agriculture Development Company (NADEC), is expected to commence operations in Q4 2026. This will be an important milestone in our long-term collaboration, initially for a period of 10 years, which combines Hilton Food's expertise in meat processing and packaging with NADEC's extensive local cattle operations. The venture is aligned with the Kingdom of Saudi Arabia's "Vision 2030" initiatives that prioritise food security.

In Canada, fit out of our new state of the art purpose-built facility, which will provide comprehensive multi-protein solutions to Walmart through a long-term partnership, is nearing completion. We are on track to commence operations in January 2027, before ramping up production over the first half of next year. Initial production of bacon, which is now planned to be added to the scope, is expected to commence later in 2027.

Total capital expenditure on the Canada project was £26.3m in H1 2026, taking total spend to date to £80.7m. We expect capital expenditure of around £25m in H2 2026 to complete the core project, with capital expenditure relating to bacon expected to be incurred in 2027. Total capital expenditure will be higher than originally assumed, reflecting changes in scope including additional capacity and levels of automation, and incremental inflationary pressures on building materials and automation equipment. However, we expect the project to generate significant value for the Group, and it provides an important platform for future growth and long-term returns.

Our Sustainable Protein Plan

Sustainability remains core to our business and 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. It is embedded into every aspect of our operations, with a strong culture of continuous improvement and innovation.

Having originally introduced the Sustainable Protein Plan in 2021, our focus as we move to the next iteration is on evolution. We are building on what we have learned over the past five years, reflecting the latest science and regulation. Our updated Sustainable Protein Plan, introduced earlier this year, is built around two pillars, People and Planet, with Product now integrated across both pillars. This simplifies our sustainability strategy while amplifying its impact.

More detail on our 2026 Sustainable Protein Plan is available in our 2025 Annual Report and the standalone Sustainability Report.

Well-positioned for the future

Our strategy announced in March 2026 will create a simpler and more-focused Hilton Foods, capable of delivering growing and more predictable adjusted earnings and attractive shareholder returns. The Group has:

·    A resilient core meat and fresh prepared food business, with structural advantages and proven execution ability.

·    A clear strategy to drive growth through maximising its core competitive advantages, enhancing its product mix and expanding geographically.

·    A disciplined capital allocation framework driving targeted returns in excess of 20%.

·    Strong cash generation and sustainable profit growth potential.

·    A progressive dividend policy and compelling shareholder returns.

Hilton Foods is well placed to deliver in the next phase of its evolution, as we aim to be "the global partner of choice, built on world class red meat capabilities'.

Financial review

Basis of preparation

The Group is presenting its results for the 26 week period ended 28 June 2026, with comparative information for the 26 week period ended 29 June 2025. 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. A reconciliation of these APMs to the relevant IFRS measures is presented in note 18.

Group profit and earnings

Volume and revenue

Total volumes from continuing operations increased by 2.1% in the period, with growth in both the East and West regions. Revenue from continuing operations of £2.3bn was up 15.3%, 11.5% up on a constant currency basis, reflecting the impact of high inflation throughout 2025 and into 2026 on raw material pricing in all our markets.

Additional details on regional volume, revenue and profit are provided in the Business Review - Regional performance section.

Operating profit and margin

Adjusted operating profit from continuing operations, which excludes adjusting/exceptional items as set out in note 18 was down 3.4% on a reported basis to £45.8m (H1 2025: £47.4m), 6.6% down on a constant currency basis. This largely reflects ongoing challenges in our seafood businesses, with core meat and fresh prepared food activities delivering adjusted operating profit growth during the period. Total adjusted operating profit, which includes discontinued operations, was down 6.0% to £43.8m (H1 2025: £46.6m), 9.1% down on a constant currency basis.

The Group's adjusted operating profit margin from continuing operations in H1 2026 was 2.0% (H1 2025: 2.4%) and the adjusted operating profit per kilogram of packed food sold was 17.7p (H1 2025: 18.6p).

Adjusting/exceptional items from continuing operations totalled costs of £17.2m (H1 2025: costs of £3.8m). These include reorganisation/restructuring and transformation costs of £7.5m, costs largely related to operational disruption and recovery activities at Foppen of £7.0m, and a share of losses from the Alimenta associate relating to post-completion and transaction specific costs of £1.1m. After allowing for these items, and the impacts of lease accounting and amortisation of acquired intangibles and fair value adjustments, statutory operating profit from continuing operations was £28.6m (H1 2025: £43.6m). Total statutory operating profit including discontinued operations was £9.4m (H1 2025: £41.3m), which included a £16.7m impairment on Dalco, now held for sale.

Net finance costs

Adjusted net finance costs from continuing operations, excluding adjusting items and lease interest, were broadly unchanged at £13.0m (H1 2025: £12.8m) including £0.9m for foreign exchange losses on bank borrowings. Statutory net finance costs from continuing operations were £16.8m (H1 2025: £16.5m), which include £3.8m of IFRS16 leasing interest cost (H1 2025: £3.7m).

Taxation

The adjusted taxation charge for the period from continuing operations was £9.1m (H1 2025: £8.8m), resulting in an effective tax rate of 27.7% (H1 2025: 25.4%), broadly in-line with 2026 full year guidance. After excluding the tax effect of adjustments to profit before tax, the IFRS statutory taxation charge from continuing operations was £4.3m (H1 2025: £6.9m).

Net income and earnings per share

Reflecting the above, Group adjusted profit after tax from continuing operations was £23.7m (H1 2025: £25.8m). After accounting for non-controlling interests of £0.6m (H1 2025: £0.6m), profit for the period attributable to owners of the parent was down 8.3% to £23.1m (H1 2025: £25.2m). The resulting adjusted basic earnings per share was 25.7p (H1 2025: 28.3p). Including discontinued operations, adjusted basic earnings per share was 23.4p (H1 2025: 26.5p).

Including the post-tax impact of adjusting/exceptional items, a statutory loss after tax including discontinued operations attributable to owners of the parent of £10.8m was reported (H1 2025: profit of £16.5m). This resulted in a statutory basic loss per share of 12.0p (H1 2025: earnings per share of 18.6p) and the diluted loss per share was also 12.0p (H1 2025: earnings per share of 18.3p).

Cash flow, balance sheet and funding

Earnings before interest, taxation, depreciation and amortisation (EBITDA)

EBITDA including discontinued operations was £62.0m (H1 2025: £80.4m). Excluding the impact of lease accounting and adjusting items, as reconciled in note 18, adjusted EBITDA, which is used by the Group as an indicator of cash generation, decreased slightly to £66.3m (H1 2025: £70.7m), broadly in line with the reduction in adjusted operating profit.

Free cash flow

Cash generated from operations was £45.3m (H1 2025: £26.9m), including seasonal working capital outflows. H1 2025 working capital also included the impact of the purchase of additional inventory to support peak seasonal demand, which unwound over H2 2025 and H1 2026. Interest paid was slightly higher than in H1 2025, including £4.8m of refinancing costs related to the new banking facilities. Reflecting all the above, net cash generated from operating activities was £11.8m (H1 2025: £0.6m net cash used in operating activities).

Capital expenditure of £45.3m was slightly higher than last year (H1 2025: £41.2m) including spend on our Canada and Saudi Arabia projects. As a result, free cash outflow (the sum of net cash generated from operations and net cash used in investing activities) was £39.7m (H1 2025: outflow of £40.6m). After accounting for the cash impact of lease accounting and adjusting items, adjusted free cash flow, which also excludes capital expenditure on our Canada and Saudi Arabia projects, was £10.4m (H1 2025: outflow of £30.8m), as reconciled in note 18.

Net debt and financial position

When taking into account the adjusted free cash flow, capital expenditure on our Canada and Saudi Arabia projects, cash dividend payments and higher adjusting item cash outflows, the Group's closing net bank debt (comprising borrowings less cash and cash equivalents excluding lease liabilities), was £194.4m (FY 2025: £126.7m). This includes bank borrowings of £326.1m (FY 2025: £277.2m) net of cash balances of £131.7m (FY 2025: £150.5m). Period-end net bank debt as a ratio of adjusted EBITDA over the last 12 months was 1.4 times. Net debt including lease liabilities was £392.5m (FY 2025: £324.8m).

On 28 June 2026 the Group had undrawn committed bank facilities under its new syndicated banking facilities of £141.7m (28 December 2025: £106.0m). These banking facilities were completed in February 2026, increasing the overall facilities to £450.0m across a single RCF. They have an initial term of five years with extension options available that enable extension over the following two years. They are subject to covenants comprising 3 times net bank debt to EBITDA and 3.5 times EBITDA interest cover and there was comfortable headroom under these covenants at the end of the period.

Dividends

The Group has maintained a progressive dividend policy since its stock market flotation in 2007. With adjusted earnings lower compared to the same period last year, the Board has approved the payment of a flat interim dividend of 10.1p per ordinary share. The interim dividend will be paid on 27 November 2026 to shareholders on the register on 30 October 2026 and the shares will trade ex-dividend on 29 October 2026.

Risk management and principal risks

Overview 

Effective risk management at Hilton Foods is important to the delivery of our strategic objectives and helps safeguard the interests of our stakeholders in an increasingly complex operating environment. While our risk management framework continues to evolve, we are progressively embedding risk management processes across the business to support informed decision-making and the long-term sustainable growth of our operations.

Principal risks and uncertainties

The most significant business risks that Hilton Foods faces, together with the measures we have adopted to mitigate these risks, are outlined on pages 29 to 36 of the Hilton Food Group plc 2025 Annual report. A summary of the principal risks and uncertainties identified in that report is set out below:

·    Competitiveness and external environment: Our ineffective response to macroeconomic and geopolitical shocks, fluctuations in consumer spending and reliance on customers who can exercise significant buying power when it comes to contractual renewal terms could impact the future growth of the Group

·    Health and safety and security: A serious health, safety or security incident involving our people, customers or third parties could result in injury, operational disruption, legal liabilities and reputational damage.

·    Technology and cyber threats: Failure to protect our digital systems from cyber-attack, data loss or system outage could disrupt operations, expose sensitive information and damage stakeholder confidence.

·    People: Our ability to attract, retain and develop the right talent and leadership capability remains critical to delivering the Group's transformation agenda and long-term growth.

·    Food Safety, Operational Resilience and Supply Chain: Disruption to supply chain continuity, from supplier insolvency or unethical supplier practices, contamination, disease outbreak, logistics failure and/or our ability to recover operations following a disruptive event could affect product availability, service to customers and financial performance.

·    Climate change and sustainability: Failure to adapt operations and supply chains to physical and transition risks arising from climate change and maintain a commercially viable and sustainable business could adversely impact our business prospects, erode stakeholder confidence and damage our reputation.

·    Strategic change: Failure to deliver the Group's major transformation programmes, including new factories, digital enablement, and operating-model redesign could lead to business disruption, cost overruns and failure to realise strategic benefits.

·    Legal and regulatory compliance and governance: Non-compliance with applicable laws, regulation and governance in the jurisdictions in which the Group operates could result in fines, operational restrictions, loss of licence to operate and reputational damage.

·    Funding and liquidity: Failure to maintain adequate funding, liquidity, cash flow generation or meet banking covenant requirements could restrict our ability to meet obligations and invest in growth with potential for reputational damage and ultimately default.

·    Customer diversity and dominance: Hilton Foods' strategy focuses on a small number of customers who can exercise significant buying power and influence when it comes to contractual renewal and could impact the profitability of the Group.

Emerging risks

·      Increasing Geopolitical Uncertainty: Geopolitical uncertainty and active conflict in several regions remain a key risk to our supply chains and operations. Disruption to energy markets, global shipping routes and international trade, including through the Strait of Hormuz, could have wider business impacts. Our ongoing review of mitigations helps us maintain resilience across our supply chains and operations.

The risks and uncertainties outlined above remain materially unchanged since the end of the 2025 financial year and are expected to remain unchanged for the remainder of the 2026 financial year.

Cautionary statement

This 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.

Statement of Directors' responsibilities

The directors confirm that, to the best of their knowledge, this condensed consolidated interim financial information has been prepared in accordance with UK-adopted IAS 34 and that the interim management report includes a fair review of the information required by the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority, namely:

a) an indication of important events that have occurred during the first 26 weeks and their impact on the condensed set of financial statements, and a description of principal risks and uncertainties for the remaining 26 weeks of the financial year; and

b) material related party transactions in the first 26 weeks and any material changes in the related party transactions described in the last annual report.

The Directors of Hilton Food Group plc are listed in the 2025 Hilton Food Group plc Annual report and financial statements. On 16 June 2026 it was announced that Mark Clare had been appointed as independent Non-executive Chair of the Company's Board with effect from 1 July 2026. There have been no other changes in Directors since 28 December 2025. A list of current Directors is maintained on the Hilton Food Group plc website at https://www.hiltonfoods.com/.

On behalf of the Board

Mark Allen OBE

Chief Executive Officer

Matt Osborne

Chief Financial Officer

2 September 2026