Clearwater Seafoods on Tuesday released its results for the first quarter of 2011, including an operating profit of CAD 9.9 million, up 25.1 percent from the same period in 2010.
The Nova Scotia-based seafood supplier attributed its growth to higher seafood prices and a shift to higher-margin species, which was partially offset by lower sales volumes, higher harvesting costs per pound and the strengthening Canadian dollar.
Sales, however, dropped slightly to CAD 69.23 million from CAD 69.26 million in the first quarter of 2010. Net earnings also fell to CAD 1.8 million from CAD 9.8 million.
Clearwater said it is encouraged by the results. Thanks to increased demand for its products combined with the successful execution of its pricing strategy, cost savings and other productivity initiatives, the company believes it is poised to deliver sales, operating margin and earnings growth throughout 2011.
Additionally, the company plans to invest up to CAD 15 million to upgrade its fleet harvesting and plant processing capabilities this year.
“We will continue to execute with excellence against our overall business strategy as well as key cost saving and productivity initiatives,” said Clearwater CEO Ian Smith. “Market demand for our product is all major segments and we have every expectation that our business momentum will continue in 2011. Furthermore, we believe that our six core strategies will enable winning results and provide Clearwater with sustainable competitive advantage and long term growth.”
