CANADA: High Liner Foods Q2 income up on US growth
North American seafood group High Liner Foods has reported an 8% increase in net income for the second-quarter.
The Canada-bsed company attributed the growth "primarily" to its US operations and to the addition of Viking Seafoods to its results.
High Liner said yesterday (9 August) that its net income was up 8.2% to C$4.8m (US$4.9m) for the quarter ended 2 July. Sales rose 13.9% to reach C$153.3m, while volumes increased 12.7% to 44.5m pounds.
"High Liner's second-quarter performance continued to be solid, driven primarily by our US operations and the positive addition in December 2010 of Viking Seafoods to our results," president and CEO Henry Demone said. "While Viking added 7.6% to the total growth in our sales volume, our base business also accounted for 5.1%. In particular, we are pleased to note a 5.5% improvement in sales in our Canadian operations, after several quarters of decline. The continued success of our new product introductions and cost-reduction strategies helped to offset the effect of the stronger Canadian dollar, providing the backbone to another strong quarter."
For the first six months of the financial year, High Liner's net income rose 19.1% to $14.5m. Sales increased 12.1% to C$101.5m.
Demone said the company "remains optimistic" about its growth prospects for the remainder of the year.
"The organic growth experienced from the launch of new product lines is very encouraging, as these products have resonated well with consumers and the market; specifically, the success of our FireRoasters product in the US market is a testament to our experience in product innovation. We will look to maintain our emphasis on advertising, with the purpose of raising brand awareness, as this program has had positive results on sales of our branded products," he said.
High Liner said higher raw material costs "appear to have reached a plateau" and it added that it did not expect to have to make further price increases on an aggregate basis for the balance of 2011.
Shares in the company were up 6.42% at the market's close yesterday to C$15.75 a share.
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