Canadian seafood group High Liner Foods has seen nine-month sales and earnings hit by the depreciation of the Canadian dollar against the US dollar.
For the nine months to 3 October, High Liner said reported sales fell 1% to US$776.6m. Stripping out the USD-to-CND conversion, sales were up 2.9% in the period.
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Likewise, earnings also felt the negative impact of currency exchange. In US dollars, adjusted EBITDA dropped 3.9% to US$60.5m versus $62.9m. However, in Canadian dollars EBITDA slipped just 0.5%. Reported net income dropped 8.5% to $22.6m.
President and CEO Keith Decker said that the company stepped up its promotional activity in the third quarter, which hit margins but raised sales volumes. He commented: “The organisation continues to focus on improving sales volume and in the third quarter, increased promotional activity, while negatively impacting margin, did help to improve the year-over-year sales volume trends compared to the those experienced in the second quarter.
“As expected, we have not yet realized the benefit of raw material cost savings, so previous raw material cost increases, along with the weaker Canadian dollar, continue to have a negative impact on financial performance in 2015 compared to last year.”
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By GlobalData
