Shares in Hilton Food Group have dropped by over 17%, following a decline in its profit before tax.

In the 26 weeks to 30 June, the FTSE 250 food packaging firm saw its profit before tax fall by 4.7% year-on-year to £24.3m, while its operating profit fell by 5.3% to £41.3m.

The firm’s revenue increased by 7.6% to just under £2.1bn, as its retail meat and convenience delivered “above-market” volume growth of 3.1%, supported by retail partnerships and "well-aligned" product offer.

However, in the UK, this was offset by Hilton’s seafood performance, which has been impacted by softer demand for white fish.

Chief executive officer at Hilton Food Group, Steve Murrells, said: "The first half of 2025 has been shaped by a strong performance in our retail meat and convenience businesses. We remain committed on delivering our full-year results within the range of expectations.

"Whilst we have faced market-driven pressures and some specific operational challenges in seafood, we have responded with agility and continue to have a strong platform in place for future growth. I want to thank all our dedicated teams for their continued commitment.

"We have a simple objective: building upon the core strengths that have long defined the business. Our global capabilities and established customer relationships continue to provide a strong foundation for growth and sustainable returns."

In its outlook, Hilton expects its retail meat business to continue to perform well in the remainder of the year, and it added that it will continue to address the impact of inflationary trends in white fish.

As a result, it expects to deliver a profit between £76.8m and £81m.

Looking further ahead, Hilton said that its "long-term customer partnerships, presence in large growing international markets, highly efficient facilities and processing expertise” provide a "strong platform" for sustainable growth.

Investment director at AJ Bell, Russ Mould, concluded: "Hilton slumped 17% after a fishy trading update. Individuals are finding that fillets of fish and seafood are costing a lot more when they do their weekly shop, and that’s causing people to rethink their meal plans.

"Hilton Food has reported weaker demand for white fish and has incurred regulatory-linked shipping issues for smoked salmon. That’s prompted certain analysts to downgrade earnings forecasts and caused the share price to slip up."

---