Canadian frozen seafood group High Liner Foods has reported a “strong” first quarter of 2011, with its US operations driving growth in sales and earnings, thanks in part to a recent acquisition.
High Liner Foods posted a 25.3% increase in net income to C$9.7m (US$9.9m) for the 13 weeks to 2 April.
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Adjusted EBITDA, which excludes M&A, integration costs and gains and losses on disposals, rose 23.1% to C$18.1m.
The improved profits were driven by a 7.3% increase in sales to C$177.1m, High Liner Foods said.
President and CEO Henry Demone said High Liner had enjoyed “impressive” sales growth despite the impact of the stronger Canadian dollar.
When measured in US dollars, High Liner’s operations in that market saw sales rise 22.8%. The growth in the US helped offset fierce competition in Canada, Demone revealed.
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By GlobalDataThe results also covered the first three months that Viking Seafoods, the US foodservice supplier that High Liner agreed to buy in December, had contributed to the company. The integration of Viking was completed on 4 April.
“We experienced substantial growth in US sales with the launch of new products and expanded distribution for our brands, which helped offset price-driven competitive challenges in our Canadian retail operations,” Demone said. “Notwithstanding the weaker Canadian retail results, we are delighted that we significantly improved profitability with double-digit growth rates in Adjusted EBITDA in both Canadian and US markets.”
