Clearwater Seafoods saw sales volumes drop

Clearwater Seafoods saw sales volumes drop

Clearwater Seafoods has reported "record" sales and adjusted EBITDA for the third quarter of 2015, boosted by higher prices and foreign exchange as volumes fell.

The Canada-based business booked a 10% increase in sales to C$147.3m (US$110.4m) and a 26% rise in adjusted EBITDA to C$38.8m for the period to 3 October.

On a reported basis, the company saw its net earnings fall from C$3m in last year's third quarter to C$1.7m this year. However, on an adjusted basis, earnings rose from C$10.1m to C$18.7m.

The adjusted figures stripped out items including losses on foreign exchange and derivatives, as well as restructuring and refinancing costs.

Clearwater said its sales and gross margin were helped by "strong market demand in all regions for our core species" as well as higher selling prices in home currencies and higher average exchange rates for the US dollar. It said the results were "partially offset" by higher harvesting and procurement costs and lower sales volumes. 

The group's nine-month results followed a similar trend, with sales and adjusted earnings up. On a reported basis, Clearwater booked a net loss of C$16.9m for the nine months to 3 October, compared to a profit of C$9.7m a year earlier. The company's bottom line was affected by unrealised foreign exchange and derivative losses of C$46.4m.

CEO Ian Smith said: "Strong global demand across all markets and species has been a key strength that has more than offset challenging harvest conditions in the first half of 2015. With our fourth quarter still ahead of us, exceptional market conditions and improving supply position, we remain confident in our full year outlook. We ... expect that our five-year strategic plan goal of C$100m in adjusted EBITDA is now within our reach – one full year ahead of our original timetable." 

Last month, Clearwater announced the scquisition of UK-based Macduff Shellfish Group for GBP98.4m (US$149.5m).

Smith added: "Looking forward, the acquisition of Macduff further strengthens our global market position by expanding our supply of premium wild shellfish by approximately 20%."