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.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData