Last year was all about investment at Hilton Food Group (HFG). The meat processor more than doubled capital spending to £43.3m as it developed two meat-processing facilities in Australia. It also expanded its UK operations following a long-term supply agreement with Tesco (TSCO), under which volumes supplied by Hilton will increase materially.
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The start-up costs in the UK were higher than expected, but the new production lines are now fully commissioned. In Australia, the first meat-processing facility was completed on time, while the second factory in Melbourne will be launched in the third quarter. All three projects will increase volumes significantly.