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Value-added product sales grew in volume and in value in the last Q3. (Photo: High Liner Foods/FIS)
High Liner's Q3 brings increased sales
(CANADA, 11/14/2011)
Value-added frozen seafood company High Liner Foods Incorporated has reported increased sales by 12.1 per cent to CAD 161.7 million (USD 158.2 million) for the thirteen-week period ending on 1 October 2011. Sales volume escalated by 10.9 per cent to 47.8 million lb.
Adjusted EBITDA climbed by 2.8 per cent to CAD 12.9 million (USD 12.6 million), or 8.0 per cent of sales. And net income rose by 9.4 per cent to CAD 6.7 million (USD 6.6 million).
"The momentum from our solid performance during the first half of the year has carried into the third quarter of 2011, which bodes well for another strong year for High Liner Foods," said Henry Demone, President and CEO. "Our US operations were strong across both the retail and food service channels, with the positive addition from the Viking acquisition complementing core organic growth.”
“Sales volume and revenue growth in our Canadian operations was positive overall, continuing the strong year-to-date results in food service and the turnaround in retail seen in the second quarter. Our new product innovations, cost-reduction strategies, recovery of stock option expense, and the positive effect of the stronger Canadian dollar on our cost of sales, helped to drive our strong results into the second half of 2011," he added.
Demone assured that High Liner remains on track to meet expectations for 2011, in light of the continuation of positive results into the third quarter. The expanded distribution supported by earlier efforts in advertising and marketing had a sustained positive effect on sales.
Furthermore, the response from consumers and the market to the firm’s new products, including Fire RoastersTM, has been positive, he continued.
Demone noted that higher raw material costs from the second quarter resulted in higher cost of inventory for sale in the third quarter. And that although seafood costs have remained high and slashed High Liner’s results, the company does not expect to see an additional material increase to the end of the year.
The economic landscape in the US and Canada has been beneficial to High Liner’s business during the third quarter and Demone is optimistic that this will go on through the rest of 2011.
“We look to continued sales expansion and distribution growth with an ongoing focus on cost-reduction initiatives as we strive to deliver strong financial results," he concluded.
High Liner is continuing its talks to take over Icelandic Group's US plants and related Asian operations. The acquisition would double High Liner’s US business.
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