CANADA: H1 profits up at High Liner but Q2 weaker
Canada-based seafood group High Liner Foods today (12 August) reported an increase in half-year profits but booked sliding second-quarter earnings on the back of input costs and soft foodservice sales.
The company posted a 13.2% increase in half-year net profit to US$21.3m. High Liner also said its adjusted EBITDA was up 8.1% at US$43.9m.
Sales grew 12.1% to US$538.2m, helped by the acquisition of frozen seafood and scallop porcessing business American Seafood last October. Underlying sales fell year-on-year.
Underlying sales were higher in the second quarter but profits fell.
"Second-quarter earnings in 2014 decreased compared to last year largely as a result of lower margins on certain products in our Canadian business," CEO Henry Demone said. "Raw material costs in our Canadian business have increased in 2014, in part due to a weaker Canadian dollar, and have not been fully recovered through price increases to our customers."
He added: "Unfortunately, many of our major customers operating in the US foodservice industry are continuing to experience soft sales, creating a challenging environment for this part of our business. We are focused on working with our customers to develop innovative seafood products to help drive increased sales."
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