Shares of Hilton Food Group (HFG) tumbled after the company issued a disappointing outlook for 2026. The international food business projects an adjusted profit before tax of £60-65 million, falling short of analyst expectations of £68.6 million. The company cited challenges, including ongoing restrictions on smoked salmon exports from its Greek facility to the U.S. market, which are expected to persist.

The company's cautious outlook stems from several factors. Restrictions on exports from the Greek facility are expected to last through the first half of 2026, and higher U.S. stock write-offs are anticipated. Persistent inflationary pressures in beef and white fish are also weighing on performance. The company’s net bank debt is around £135 million, slightly up from last year.

Despite the negative outlook, Hilton Foods successfully renewed core retail meat partnerships in the Netherlands and Denmark. A strategic review is nearing completion, with results expected on March 31, 2026. This review is likely to reinforce the focus on core meat capabilities. Investors will watch for details of their future strategy.

The disappointing 2026 outlook reflects the impact of various headwinds, including the continued challenges at their Foppen facility and sustained inflation. The company's Executive Chair, Mark Allen, acknowledged that the company is taking a cautious approach to guidance. The market reacted negatively, reflecting concerns about future profitability.