Lunenberg, Nova Scotia, Canada-based High Liner Foods saw its sales volume and net profit increase in Q1 2026, but global supply pressures ultimately hurt the company’s bottom line.
While the timing of the Lenten period supported strong sales, it also prevented the company from passing along the high costs caused by global whitefish shortages.
"We experienced strong demand and top-line growth in the first quarter, supported by the timing of the Lenten period and enhanced promotional activity," High Liner Foods President and CEO Paul Jewer said in a release. "However, global supply limitations – particularly in key whitefish species – and challenges with fully passing through higher costs during the Lenten period put pressure on margins and plant performance, impacting our bottom line."
The company reported a sales volume increase of 7 million pounds, or 10.6 percent, to 73 million pounds, compared to the 66 million pounds sold during the same period last year. By value, sales increased 24.8 percent to USD 334.9 million (EUR 287.8 million), compared to USD 268.4 million (EUR 230.7 million). Gross profit also increased USD 3.1 million (EUR 2.7 million), or 4.9 percent, to USD 66.6 million (EUR 57.2 million), up from USD 63.5 million (EUR 54.6 million).
In addition to the Lenten period, High Liner's sales in Q1 were buoyed by a U.S. Department of Agriculture contract.
The company also faced several challenges, including higher raw material costs – including tariffs – elevated promotional activity, unfavorable product mix, supply chain challenges, and the limited availability of the key whitefish species High Liner utilizes.
Ultimately, High Liner’s adjusted EBITDA decreased by USD 2.8 million (EUR 2.4 million), or 8.7 percent, to USD 29.3 million (EUR 25.2 million), down from USD 32.1 million (EUR 27.6 million).
"We are strengthening our execution, with a focus on continued pricing and cost management, refining our promotional strategy, and delivering plant efficiencies,” Jewer said. “This approach will position the business for improved profitability for the balance of the year, as we manage ongoing market pressures."
High Liner’s recently acquired brands – Mrs. Paul’s and Van de Kamp’s – also impacted the company’s Q1 results. High Liner acquired the two lines from Conagra Brands for USD 55 million (EUR 47.3 million), later adjusted to USD 42.4 million (EUR 36.4 million), in June 2025.
“The company anticipates approximately 12 to 18 months of ramp-up time to realize synergies from across operations which are reflected, after transaction costs, in the estimated annual run rate from 2027 onwards,” High Liner said when the acquisition was announced. “The transaction is expected to be slightly accretive to adjusted EBITDA starting in the second half of 2025.”
While the acquired brands supported higher retail volume, they also contributed to higher distribution expenses. High Liner attributed most of its higher distribution expenses – which rose USD 4.2 million (EUR 3.6 million) to USD 16.7 million (EUR 14.4 million) – to increased freight costs related to Mrs. Paul’s and Van de Kamp’s sales. The former Conagra Brands product lines also contributed to increased storage costs due to higher levels of inventory.
Overall, Jewer said the company had taken action to improve its performance, which would likely result in a higher year-over-year adjusted EBITDA for the year compared to 2025.
"We are well-positioned to drive improved performance supported by our market leadership, ongoing innovation, margin improvement initiatives and strong balance sheet," Jewer said. "The actions we are taking to strengthen our execution, combined with the diversity of our portfolio across species and channels, position us to optimize our value proposition in an inflationary and competitive environment where raw material costs are expected to remain elevated. We expect our performance to improve as these actions take hold, with the full benefits of our improvement initiatives becoming more evident in the second half of the year, resulting in higher year-over-year adjusted EBITDA in 2026 compared to 2025."
High Liner has also begun filing refund claims for the tariffs it paid under U.S. President Donald Trump’s International Emergency Economic Powers Act tariffs, which were ultimately ruled unconstitutional by the U.S. Supreme Court. The company paid USD 41.3 million (EUR 35.5 million) in tariffs, but it expressed caution over whether its claims would be accepted and paid out.
“There can be no assurance that refund claims submitted by the company will be accepted in whole or in part, or as to the timing of any refunds. The refund process is subject to administrative capacity constraints, compliance review, evolving judicial guidance, and potential further governmental or policy developments, any of which could delay, limit, or preclude recovery,” the company said.
