(Reuters) -Shares of Hilton Food Group fell more than 19% on Wednesday after the British food supplier warned of higher costs in its seafood unit from rising raw material prices and regulatory curbs at its Foppen business in Greece.
Reduced fishing quotas in the UK and post-Brexit fishery policies have driven up raw material costs, dampening demand for seafood products among Britons.
Hilton’s UK seafood sales were hit by lower availability of white fish as well as a drag in its Foppen unit, central to Hilton’s smoked salmon output.
U.S. shipment curbs forced a temporary shift of production to the Netherlands, pushing up costs, the company said.
“We are working closely with the FDA to resolve the current disruption, although we anticipate continued impact on Foppen through the second half of 2025,” Hilton said in a statement.
The company said it expects an adjusted pre-tax profit between 76.8 million pounds ($103.75 million) and 81 million pounds for the year ending 28 December, based on a company-compiled consensus.
Analysts at Panmure Liberum said the current consensus was at 80 million pounds.
The company’s revenue grew 7.6% year-over-year to 2.09 billion pounds in 26 weeks to June 29, while its adjusted operating profit fell marginally to 46.6 million pounds.
Shares, at 662 pence, were at their lowest since November 2023.
If losses hold, the stock will record its biggest one-day percentage fall since September 2022.
($1 = 0.7402 pounds)
(Reporting by DhanushVignesh Babu in Bengaluru; Editing by Nivedita Bhattacharjee)
