Shares in Clearwater have soared, despite the Canadian seafood distributor swinging to a net loss in 2010.
Shares in the distributor were up 6.77% to C$1.42 (US$1.46) a share at the market’s close yesterday (29 March), despite it recording a C$7.4m net loss for 2010 against a C$26.1m net profit in 2009.
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The company attributed the swing to large unrealised non-cash foreign exchange gains in 2009.
However, EBITDA for the year rose 14% to C$44.8m while sales grew 2.5% to reach C$291.1m.
For the fourth quarter, the comapny recorded C$1m in net profit, against a C$2.4m net loss in the fourth quarter of 2009. Sales in the fourth quarter rose 13.8% to C$77.8m.
The company’s management said it is “encouraged” by its results and the “increasing global consumer and customer demand for its premium, wild, eco-labeled seafood”. This, combined with what it described as the “successful execution of pricing strategy, cost savings and other productivity initiatives”, means it is set to “continue to deliver improved operating margins and earnings performance in 2011.
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By GlobalDataClearwater said it plans to complete in a substantial plant and vessel upgrade programme, with the majority to be completed in the first and second quarters of 2011. It said that it plans to invest up to C$14m in sustaining its fleet and plans in 2011.
