Hilton Food Group plc has announced the appointment of Steve Murrells CBE as Group Chief Executive Officer. The company also published its preliminary results for the 52 weeks ended 1st January 2023, which underlined its volume and revenue growth against a volatile backdrop.
Murrells will assume the role from 3rd July 2023, and will join the Group Board at the same time. He succeeds Philip Heffer, who has decided to stand down from the Board and step back from running the company after almost 30 years with Hilton Foods, including the past five years as Group CEO. Heffer will remain with the business as co-founder and advisor to the Hilton Foods Board.
Steve Murrells’ connection to the business dates back almost 30 years, when he was one of Hilton Foods’ first customers and commercial partners at Tesco. After serving as CEO of Tulip Ltd from 2009 to 2012, Steve was appointed as CEO of Co-op Food, where he oversaw a turnaround in performance and repositioned the business as a leading convenience player. This was followed by five years as Group CEO of Co-op Group, leading the business through the Covid-19 pandemic, repositioning the Group’s Insurance and Probate businesses, and growing its online capabilities.
Murrells was appointed Commander of the Order of the British Empire (CBE) in the 2022 New Year Honours for services to the food supply chain. He also currently acts as an advisor to Noble Foods Ltd.
Next level
Robert Watson OBE, Chairman, commented: “Following Philip Heffer’s decision to stand down, we are delighted to announce the appointment of Steve Murrells as Group CEO. Steve has an outstanding record as a leader within the food industry, and the Board is confident that his considerable experience will be of huge benefit to Hilton Foods as we take the business to the next stage.
“On behalf of the Board, I want to thank Philip for everything he has contributed to Hilton Foods. He has been instrumental to the growth of the business we founded together in 1994 and I am extremely pleased that we will continue to benefit from his experience and expertise in his new advisory role.”
Philip Heffer, outgoing Group Chief Executive Officer, commented: “After the work we’ve done to grow Hilton Foods and expand our commercial model over the past five years, this is a good moment to step back from running the business. Hilton Foods today is a major international business, with sales and operations across Europe, Asia and the Pacific, offering a broad range of quality products, from meat and seafood to vegan and vegetarian products.
“Steve was one of our first customers in the 1990s and he has an excellent track record within the food industry. Although I am stepping down from the Board, I’m proud to remain a significant shareholder and I look forward to supporting the continued growth of the business in my new role.”
Steve Murrells CBE, incoming CEO, said that he is looking forward to working with the Hilton Foods team to take the company to “the next level and become the international food and supply chain partner of choice.”
Outlook and current trading
The company’s latest trading report revealed that the Group’s trading performance since the beginning of 2023 has been in line with the Board’s expectations – despite “the backdrop of a challenging environment, with global uncertainties impacting supply chains and inflation.”
Hilton’s short and medium term growth prospects are underpinned by the acquisitions of Foppen, Dalco and Fairfax Meadow, a new partnership in Singapore and recovery in its UK Seafood business. The Group also believes that there are further opportunities arising across its markets by the development of its cross-category business and the application of its supply chain management expertise.
Key points from the company’s financial overview include:
- Group revenue up 16.5% to £3.8 billion (2021: £3.3 billion), underpinned by contribution from newly acquired businesses, first full year of trading in New Zealand and inflationary impact
- Volume growth of 4.3% to 513,816 tonnes (2021: 492,588 tonnes)
- Adjusted operating profit down 3.3% to £71.1 million (2021: £73.6 million)
- IFRS operating profit down 14.8% to £54 million (2021: £63.4 million) after exceptional items of £11.9 million, relating predominantly to 2021 fire at Belgium site.
Commenting on the results outgoing Chief Executive 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.
“Our meat category has performed well and we have continued to innovate with new and award winning products. We have continued to grow in new and emerging markets following the acquisitions of Foppen and Fairfax Meadow with both these businesses performing well, while also expanding in Asia with Country Foods. Despite the significant macro-economic challenges, we have continued our record of growing our volumes every year since Hilton Foods became a publicly listed company in 2007.
“Hilton Foods today is a completely different business from the company we started in 1994. Over 75% of our sales volumes are now outside the UK; we offer a wide range of protein products and categories; and we have built a technology services offer which is best-in-class in the industry. The global economy today is more uncertain than at any time in the past thirty years, but Hilton Foods is well set for long-term success.”
