Hilton Food Group PLC said on Wednesday its annual revenue grew though profit fell, and it announced the appointment of a new chief executive officer.

The Cambridgeshire, England-based food packaging business said its revenue for the year ended January 1 grew by 17% to £3.85 billion from £3.30 billion the year prior.

This was primarily driven by higher raw material prices and volume growth following Hilton Food’s recent acquisition of Foppen, the company said.

Hilton Food added that full year volumes from Fairfax Meadow and Dalco, which were acquired in 2021, and the opening of a facility in New Zealand also boosted its annual growth.

Meanwhile, its pretax profit fell by 38% to £29.6 million from £47.4 million.

This attributed to challenges in the company’s UK Seafood business, as a recovery from inflation took longer than expected, Hilton Food explained. Additionally, total administrative expenses were up by 23% to £287.9 million from £233.2 million the year prior.

Hilton Food proposed a final dividend for 2022 of 22.6 pence, up from 21.5p, bringing the total dividend to 29.7p, unchanged from last year.

Looking ahead, Hilton Food said it is well positioned for the year ahead as its trading performance in the beginning of 2023 has been in line with its expectations. It noted that its short and medium term growth prospects are underpinned by its acquisitions of Foppen, Dalco and Fairfax meadow, a new partnership in Singapore and recovery in its seafood division.

Chief Executive Officer Philip Heffer said: ‘After the challenges we faced last year in our seafood business, we took a series of steps to rebuild profitability and we are now well placed for the year ahead. Meanwhile we have continued to deliver on our strategic priorities and to set the business up for long-term, sustainable growth.’

Hilton Food appointed Steve Murrells as CEO, with effect on July 3.

Murrells will be replacing Phillip Heffer, who is stepping down after five years in this role. Hilton Food said Heffer will remain with the company as co-founder and advisor to its Foods board.

Murrells served as CEO for Co-op Group and was appointed as commander of the British Empire in 2022 for his services to the food supply chain.

Shares were down 2.3% at 678.77 pence in London on Wednesday morning.

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