High Liner 2Q sales slump
High Liner Foods on Wednesday reported its results for the second quarter of 2013, with sales down to USD 204.9 million compared to USD 216.8 million during the same time period in 2012.
However, net income increased to USD 9.9 million (EUR 7.4 million) compared to USD 1 million (EUR 749,639) in the second quarter of 2012. EBITDA for the quarter was USD 19.3 million (EUR 14.5 million), up from USD 16.4 million (USD 12.3 million).
“We are pleased with our financial performance in the second quarter, particularly with the USD 3.7 million (EUR 2.8 million) increase in the company’s adjusted net income and the USD 2.9 million (EUR 2.2 million) increase in its adjusted EBITDA,” said Henry Demone, president and CEO. “Despite experiencing an overall reduction in sales volumes in the quarter, the company’s profitability has improved, primarily reflecting lower raw material costs compared to last year, along with realization of synergies resulting from integrating the Icelandic USA acquisition. The increase in adjusted net income also reflects significant savings in financing costs resulting from amendments made to our term loan in 1Q of this year.
“However, similar to 1Q, we saw continued challenges in our U.S. foodservice business related to soft restaurant sales, and retail private labels sales continued to be weaker in both the U.S. and Canada, reflecting the trend of decreased private label seafood sales in the seafood marketplace overall.
“Helping to offset lower private label sales in the U.S., sales increased in the second quarter for our Sea Cuisine and Fisher Boy products compared to last year, the impact of which was partially offset by higher Sea Cuisine promotional costs that are expensed as a reduction to sales as incurred. Canadian branded retail sales volume was consistent with last year, while sales volume in our Canadian food service business experienced an increase in the second quarter compared to last year.”