Lunenburg, Nova Scotia, Canada-based seafood company High Liner Foods posted its sixth-consecutive quarter of year-over-year growth and earnings before interest, taxes, depreciation, and amortization (EBITDA) in Q3 2023 – and the company said it is well-positioned to continue growing.
High Liner's sales increased in Q3 2022 by USD 56.9 million (EUR 56 million) to USD 271.2 million (EUR 266.8 million), a 26.6 percent increase compared to Q3 2021. Sales volumes in the quarter also increased by 5.6 million pounds to 60.4 million pounds, a 10.2 percent increase compared to Q3 2021.
The company’s adjusted EBITDA increased by USD 2.4 million (EUR 2.3 million) to USD 24.8 million (EUR 24.4 million), an increase of 10.7 percent compared to the USD 22.4 million (EUR 22 million) it earned in 2021.
"Our supply chain remains resilient, and our people embody high performance across all aspects of the business," High Liner President and CEO Rod Hepponstall said in a release.
During a 10 November investor call, High Liner CFO Paul Jewer said that so far in Q4, the company's results have been promising. Supply chain issues that have been plaguing the seafood industry are showing signs of abating, he said.
“It’s absolutely our intention in 2023 to continue to drive volume growth and EBITDA growth,” he said.
However, Hepponstall said he expects High Liner to face stronger headwinds in the coming months as inflationary pressures cut into consumer spending. High Liner Chief Commercial Officer Anthony Rasetta, who joined the company in July 2021, said High Liner has seen signs of consumers changing what they buy to account for inflation.
“We are seeing consumers shifting in the marketplace looking for more value. We’re seeing that from a foodservice perspective in terms of the types of channels that they’re shopping in,” Rasetta said. “Within retail, we are seeing more growth in our category and other categories associated with value products.”
Despite the shifts, Rasetta said it is well-positioned to continue growth due to its diverse portfolio of products, which include a number of retail and foodservice offerings he said offer high value to customers.
Hepponstall said the company's current production is meeting demand but that it has additional capacity if needed.
“We’re very fortunate that we have the ability, through shift changes and other means, to increase our capacity when needed to increase and grow our business,” he said.
Hepponstall said High Liner will continue with its capex expenditure plan in 2023, and said the firm's board of directors has increased its credit facilities.
"To support ongoing growth, we increased our credit facilities from USD 150 million [EUR 147 million] to USD 200 million [EUR 196 million],” Hepponstall said. “With this additional financial capacity and flexibility, we can continue to support the investment in our business and further capitalize on the opportunities ahead of us.”
Photo courtesy of High Liner
