Hilton Food Group, the specialist meat packing business, reported sales close to £1.1bn (€1.4bn), a marginal decline (-0.4%) compared with 2014. Currency headwinds negatively impacted turnover by 7.4%, with the pound sterling hardening over the year and almost two-thirds of sales coming from markets outside the UK.

Despite the currency headwinds and weak consumer confidence in Europe, Hilton grew sales volumes by more than 5% last year to over 244,000t thanks mainly to larger contracts with its main retail partner, Tesco.

The increased sales volumes helped Hilton improve its profitability last year, with operating profits increasing more than 11% to £29m (€36m). On a constant currency basis, operating profits increased more than 20% last year. Operating margins were 2.65%.

Four retail partners (Tesco, Albert Heijn, Coop Denmark and ICA Gruppen) accounted for more than 98% of Hilton’s sales last year. Tesco alone accounts for just under 50% of total sales leaving Hilton inextricably tied to the performance of the British retail giant.

Despite the significant levels of capital investment, Hilton ended 2015 debt free and actually finished the year with a net cash position of almost £13m (€16m).