Surf clam. (Photo: Clearwater)

Clearwater registers higher profits in Q2

In the second quarter this year Clearwater registered a 10.5 per cent growth year on year in its adjusted EBITDA, which was CAD 30.5 million (USD 23.4 million) compared to the corresponding quarter in the prior year.

For the first half of the year, the firm reported a 4.9 per cent increase in adjusted EBITDA, to CAD 49.6 million (USD 38.1 million), a result that it attributes to strong sales mix and lower administrative and selling costs following the organization restructuring in the fourth quarter of 2017.

Strong prices and timing of landings for frozen at sea (FAS) shrimp and higher volumes and sales mix for clams were offset by lower available supply and competitive scallop conditions associated with increased US supply for a net decline in sales in both the second quarter and first half of 2018 as compared to the same periods in 2017.

FAS shrimp volumes are significantly higher than the prior year reflecting the timing of landings and improved harvesting conditions. Expanded distribution channels in China increased sales for clams, reducing inventory from peak levels.

Gross margin as a percentage of sales for the second quarter of 2018 was 19.3 per cent, consistent with the prior year.

Clearwater highlights that its business experiences a predictable seasonal pattern in which sales, margins and adjusted EBITDA are lower in the first half of the year and higher in the second half, while investments in capital expenditures and working capital are typically higher in the first half of the year and lower in the second half.

This normally results in lower cash flows, higher debt balances and higher leverage in the first half of the year and higher cash flows, lower debt balances and lower leverage in the second half.

 
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Address:	757 Bedford Highway
City:	Bedford
State/ZIP:	Nova Scotia (B4A 3Z7)
Country:	Canada
Phone:	+1 902 443 0550
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