Higher volumes, sales boost Clearwater’s profits
Clearwater Seafoods Inc. achieved sales of CAD 256.4 million (USD 194.9 million, EUR 175.5 million) and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of CAD 46.3 million (USD 35.2 million, EUR 31.7 million) for the first half of 2016, representing growth of 33 percent and 45 percent, respectively.
According to the Canadian firm, these increases were primarily due to higher sales volumes, improved margins and favorable exchange rates. Volume growth was primarily attributable to langoustine, whelk and clam, partially offset by a decline in shrimp landings.
Its sales and gross margin were positively impacted by strong market demand in all regions as well as higher selling prices in home currencies and higher average exchange rates partially offset by higher procurement costs and sales mix.
Clearwater's results for the six months include sales of CAD 55.3 million (USD 42 million, EUR 37.9 million) and adjusted EBITDA of CAD 5.8 million (USD 4.4 million, EUR 4 million) for Macduff Shellfish Group Ltd., the U.K. wild shellfish company that it acquired in October 2015.
The supply of wild seafood is limited and is expected to continue to lag behind the growing global demand, it said, adding that the supply/demand imbalance has created a marketplace in which purchasers of seafood are increasingly willing to pay a premium to suppliers that can provide consistent quality and food safety, wide diversity and reliable delivery of premium, wild, sustainably harvested seafood.
"Exceptional harvesting conditions – especially in May and June of the second-quarter of the year, have positioned us well for a strong performance in the third- and fourth-quarters of 2016," said Ian Smith, CEO of Clearwater.
"We are also very pleased with the continued strong performance and results of Macduff post-acquisition as well as our recently expanded clam fleet.
"In 2016, Clearwater celebrates its 40th anniversary and kicks off the next five-year, 2016 to 2020 strategic plan. In it, we continue to focus on executing with excellence against our six core strategies and see many attractive opportunities for future growth."