High Liner Foods' net income for the quarter improved. (Photo: High Liner Foods)

High Liner satisfied with Q1 profits

North American seafood processor and marketer High Liner Foods Incorporated reported on Tuesday its financial results for the thirteen-week period ended on 3 April.

The firm’s adjusted EBITDA rose by 7.4 per cent to CAD 14.1 million (USD 13.8 million) on lower reported sales against the same period last year. Its net income jumped to CAD 7.2 million (USD 7 million), or CAD 0.39 (USD 0.38) per share, versus CAD 6.7 million (USD 6.5 million), or CAD 0.36 (USD 0.35) per share.

"We are pleased with the improved profitability achieved for the quarter," said President and CEO Henry Demone. "While our reported sales in Canadian dollars were down, primarily due to currency fluctuations, our sales volume was up 3.0 per cent for the quarter.”

“Importantly, our US food service business achieved a 7.1 per cent increase in sales volume, representing the first quarter of growth since the recession began. We are hopeful that the growth in this channel is signaling that the worst of the recession is behind us," he added.

Q1 sales fell to CAD 165.1 million (USD 161.4 million) from CAD 183.3 million (USD 179.1 million) a year ago, with the stronger CAD decreasing the value of reported US sales by some CAD 18.1 million (USD 17.7 million). Sales in CAD were CAD 161.5 million compared to CAD 161.6 million for the first quarter last year.

Higher sales volume (measured in pounds) for Q1 was offset by reduced selling prices and the cost of more promotional activities. The sales volume increased by 3.0 per cent to 51.0 million lb compared to 49.5 million lb the year prior.

In Canadian currency, adjusted EBITDA escalated by 14.0 per cent to CAD 13.7 million (USD 13.4 million) from CAD 12.1 million (USD 11.8 million) a year ago, profiting from higher volume and lower seafood and other input costs.

Demone said he is hopeful that a revitalization of its US food service business foretells that the economy is finally recovering enough to allow for a higher dividend.

Nova Scotia-based High Liner is a leading processor and marketer of prepared, value-added frozen seafood. Its branded products are sold throughout the US, Canada and Mexico under the High Liner(R), Fisher Boy(R), Mirabel(R) and Sea Cuisine(TM) labels in grocery and club stores.

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By Natalia Real
[email protected]
www.seafood.media

Address:	100 Battery Point - Box 910
City:	Lunenburg
State/ZIP:	NS (B0J 2C0 )
Country:	Canada
Phone:	+1 902 634 8811
Fax:	+1 902 634 4785
E-Mail:	[email protected]
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