High Liner Foods books mixed Q3 results
Canada-based seafood group High Liner Foods has posted higher net sales and net income for the third quarter but admitted pressure on US volumes and saw underlying earnings fall.
High Liner booked net income of US$7.6m for the quarter to 27 September, up from $7.4m a year earlier.
Sales grew 13.9% to $246.6m as the company benefited from last year's acquisition of American Pride Seafoods.
However, adjusted net income, which excludes such M&A costs, gains on interest rate swaps and other non-recurring costs, was down, hitting $8.4m, compared to $10.4m a year ago.
Adjusted EBITDA dropped 14% to $19m amid lower overall sales volumes - excluding the impact of the American Pride purchase - lower product margins in the US and higher SG&A spending in the country.
"Sales increased in the third quarter of 2014 primarily reflecting the American Pride Seafood business we acquired in October of last year," CEO Henry Demone said. "However, excluding sales from American Pride, we continued to experience sale volume declines in our US food service business.
"The continued sales decline in our US foodservice business reinforces how important it is for the company to bring innovative products to its customers, and we continue to make progress on this. We also made good progress on our supply chain optimisation initiatives in the third quarter and expect these initiatives will bring margin improvement and cost reductions beginning in early 2015."
Over the first nine months of 2014, High Liner saw sales, net income and adjusted EBITDA increase.
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