Despite unfavourable currency movements, the UK-based Hilton Food Group reported solid financial results for the year ending December 2014.

Operating profit increased 1.1% to £26.1m (€35.8m). This was due to lower cattle prices, which led to a slight increase in operating profit margins to 2.4%. Profit before tax stood at £25.2m (+1.3%), while sales volumes increased by 3.5% to more than 231,500t. The majority of this volume growth came from the UK and Holland.

Revenue was down slightly by 2.3% to £1.1bn, reflecting both the exchange rate movements and the reduced prices paid for animals. The company’s Irish business recorded sales back 20% to £60.3m last year. Sales to the UK were up 24% to £391m.

The group last year invested £43.3m, up from £18.4m in 2013. Hilton Food Group said its scheme to modernise and expand the capacity of its Huntingdon site and service increased volumes for Tesco is “well advanced”, with the new production facilities fully commissioned.

Hilton operates an extremely narrow customer base, with Tesco by far the group’s biggest customer, accounting for £472.9m or 43% of sales in 2014. Last year saw Hilton sell more to Tesco than 2013, with sales up 13%. Any improvement in Tesco is surely positive for Hilton.

The company has operations in Poland, Sweden, Denmark, Ireland, UK and Australia.