High Liner earnings dropped in 2023 amid “challenging” market conditions

The company saw higher volumes and revenue but tighter margins as consumer spending shifted
High Liner Foods' headquarters in Portsmouth, New Hampshire, U.S.A.
High Liner Foods' headquarters in Portsmouth, New Hampshire, U.S.A. | Photo courtesy of High Liner Foods
6 Min

High Liner Foods saw an increase in sales volume but a drop in gross profit and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2023 as challenging market conditions and a supply glut early in the year shrank margins.

The company reported in its FY-2023 results that its sales volume reached 257 million pounds, a 2.4 percent, or 6.1 million pound, increase over the 250.9 million pounds it sold in the same period of 2022. Total sales value in FY2023 reached USD 1.08 billion (EUR 998 million), up by USD 10.6 million (EUR 9.8 million), or 1 percent compared to the prior year.

For Q4, or the 13 weeks ending 30 December 2023, the company’s sales volumes increased by 1.2 million pounds, or 2.1 percent, to 59.6 million pounds – up from the 58.4 million pounds it posted in the same period of 2022. Sales value, however, decreased by USD 13.2 million (EUR 12.2 million), or 5.3 percent, to USD 237.1 million (EUR 219.2 million) compared to USD 250.3 million (EUR 231.4 million).

"While our Q4 results were below the potential of our business due to the ongoing challenges posed by the macro-economic environment, we are confident that the underlying fundamentals of our business, and our strategy, remain sound,” High Liner CEO President and CEO Paul Jewer said.

For FY 2023, the company posted gross profits of USD 218.7 million (EUR 202.2 million) compared to USD 229.9 million (EUR 212.6 million) in FY 2022, a drop of USD 11.2 million (EUR 10.3 million), or 4.9 percent. Gross profit as a percentage of sales, meanwhile, dropped to 20.2 percent, compared to 21.5 percent. Adjusted EBITDA also dropped, decreasing USD 8.8 million (EUR 8.1 million), or 8.5 percent, to USD 95.1 million (EUR 87.9 million) from USD 103.9 million (EUR 96.1 million) in 2022. Adjusted EBITDA as a percentage of sales also shrank, decreasing to 8.8 percent compared to 9.7 percent.

On an earnings call, Jewer said supply and demand dynamics in the market shifted in …

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