High Liner Foods posted over 8 percent earnings growth in FY 2024, and the company said it is planning additional investments in cod and salmon-farming companies as part of its long-term strategy.
For FY 2024, the company’s adjusted EBIDTA increased USD 8.2 million (EUR 7.8 million), or 8.6 percent, to USD 103.3 million (EUR 98.2 million), up from USD 95.1 million (EUR 90.4 million). Adjusted EBITDA as a percentage of sales increased to 10.8 percent, up from 8.8 percent.
"With 8.6 percent year-over-year adjusted EBITDA growth, we closed a year of volatile market conditions on a strong note, reinforcing both the stability of our business and the effectiveness of our strategy to drive profitable top-line recovery," High Liner Foods President and CEO Paul Jewer said.
The positive FY 2024 was capped off by a solid Q4 that also saw earnings growth. In Q4 2024, High Liner’s adjusted EBITDA increased by USD 1.9 million (EUR 1.8 million), or 8.7 percent, to USD 23.8 million (EUR 22.6 million) – up from the USD 21.9 million (EUR 20.8 million) it posted in Q4 2023. Adjusted EBITDA as a percentage of sales also increased to 10.1 percent, up from 9.2 percent.
While the company’s earnings increased, its sales values and net income both decreased in the quarter. Sales value decreased by USD 2.1 million (EUR 1.9 million), or 0.9 percent, to USD 235 million (EUR 223 million) in Q4 2024 – despite a sales volume increase of 1.3 percent to 59.6 million pounds. Despite the decrease in sales revenue and increase in sales volume, the company posted an increase in its gross profit in Q4 2024 – rising USD 2.3 million (EUR 2.2 million), or 4.7 percent, to USD 51 million (EUR 48 million).
"During the fourth quarter, we continued to drive improvements in the performance of our retail business, delivering profitable volume growth over the prior year quarter, while supporting foodservice operators during market softness with innovative, value-driven solutions,” Jewer said.
For the year, High Liner’s sales volume decreased by 21.2 million pounds, or 8.2 percent, to 235.8 million pounds. Sales revenue also decreased by USD 121.1 million (EUR 115.1 million) or 11.2 percent, to USD 959.2 million (EUR 912 million). Gross profit also decreased by USD 1.4 million (EUR 1.3 million), or 0.6 percent, to USD 217.3 million (EUR 206.6 million). However gross profit as a percentage of sales increased to 22.7 percent, up from 20.2 percent.
"As we successfully navigated market pressures of 2024, we did so with the long-term health of our business and the category front of mind, strengthening relationships with our customer and supplier base, driving efficiencies across our global supply chain and diversifying our portfolio to include alternative species,” Jewer said.
Part of the company’s diversification push included investments in Norcod in the form of a 10 percent stake. The company also invested in land-based salmon-farming company Andfjord Salmon, giving it a 4.5 percent share of ownership.
As it revealed its positive FY 2024 results, High Liner said it will also plan to invest more into both Norcod and Andfjord Salmon. The company said it plans to invest USD 6.75 million (EUR 6.4 million) in Norcod and USD 10 million (EUR 9.5 million) in Andfjord in the coming weeks.
“The investments are aligned with High Liner Foods' goal to continue to position itself at the forefront of industry leadership,” the company said. “Both investments will support Norcod's and Andfjord's continued growth, innovation, and expansion and serve to preserve High Liner Foods' strategic ownership stake. Both investments will be funded by the company's cash from operations and are expected to close in March 2025, subject to customary closing conditions.”
Jewer said that looking further into 2025, he’s confident the company can continue to make progress despite market headwinds, and that it will aim to end the year with adjusted EBITDA growth.
"In a dynamic market and evolving trade environment, we are poised to focus on the factors within our control,” Jewer said. “We anticipate that despite fluctuations in performance due to market volatility and geopolitical challenges, we will still deliver another year of strong free cash flow generation. We are well-positioned, not only with the necessary balance sheet strength and financial flexibility, but importantly with a diversified global supply chain and partnerships that provide operational flexibility and the ability to deliver the solutions our customers need.”
