High Liner Foods reported lower earnings in Q2 2023 – the first time it has seen a decline after an eight-quarter growth streak – as market headwinds and softer consumer demand hurt its bottom line.
The company posted adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in Q2 2023 of USD 53.3 million (EUR 48.3 million), a decrease of USD 500,000 (EUR 453,000), or 0.9 percent, compared to Q2
Net income in Q2 2023 also decreased to USD 13.8 million (EUR 12.5 million) to USD 19.8 million (EUR 17.9 million), down 41.1 percent compared to the USD 33.6 million (EUR 30.4 million) the company posted in Q2 2022. Gross profit increased to USD 120.4 million (EUR 109.2 million), up USD 2.1 million (EUR 1.9 million), or 1.8 percent, from the USD 118.3 million (EUR 107.3 million) the company posted in Q2 2022. However, gross profit as a percentage of sales decreased to 20.6 percent in Q2 2023, compared to 21.6 percent in Q2 2022.
While earnings were down, the company saw both sales volume and sales dollar growth. The company increased its sales to USD 254.3 million (EUR 230.7 million) in Q2 2023, up slightly from USD 253.5 million (EUR 230 million) posted in Q2 2022. Sales volume increased 1 percent from 58.8 million pounds to 59.4 million pounds.
“Our foodservice business continued to perform well and outpace the category in terms of growth," High Liner Foods President and CEO Rod Hepponstall said in a release. "However ...
Photo courtesy of High Liner Foods
