Canadian seafood company High Liner Foods has announced a fall in sales and income for the second quarter ended 2 July 2005, citing challenges in its US operations as the reason for lower revenue.
Sales in the quarter were C$58.4m (US$48.1m) compared with $61.4m in the same period last year. Net income was $714,000, compared with $1.047m.
For the first half, sales were $133m, compared with $143m last year, while net income was $3.805m, compared with $4.872m.
“Second quarter revenue compared to last year reflects the continuing challenges in our US operations,” said Henry Demone, president and CEO. “Action to address these challenges includes introducing our new Captain’s Cut products, which were developed to capitalize on the opportunity in the growing US premium frozen seafood market. We have launched the first four Captain’s Cut products, which begin shipping in August, and plan to launch additional products in this line next year,”
“In Canada, marginal second quarter revenue growth was primarily the result of price increases in January,” he said. “Overall profitability for the quarter was hampered by higher promotional costs for our Stir-Fry Creations products, higher raw material costs and one-time costs related to the move of our Canadian food service logistics operations.”