HQ Sustainable Maritime Industries last week announced its results for the second quarter of 2010, including a 29 percent increase in sales to USD 20.7 million, up from USD 16 million during the same time period in 2009.
The vertically integrated Seattle company, which raises tilapia in China’s Hainan Province, credits the sales increase to new feed products it added late last year.
The company’s aquaculture product sales increased 1 percent to USD 10.6 million, compared to USD 10.5 million in the second quarter of 2009. The increase is primarily credited to an overall volume reduction of 7 percent of fish products sold in the second quarter of 2010 compared to the second quarter of 2009, offset by average price increases.
Health and bio-product segment sales also increased to USD 5.8 million in the second quarter of 2010, compared to USD 5.5 million. In addition, the company's feed mill-generated sales of USD 4.3 million compared to sales of USD 3.1 million in the first quarter of the year.
However, gross profit for the quarter decreased slightly to USD 6.5 million, compared to USD 6.6 million in 2009, which is primarily related to the health and bio-products and the feed products segments. Operating income also decreased to USD 2.4 million from USD 2.8 million in 2009, as did EBITDA to USD 2.9 million compared to USD 3.1 million.
"We are pleased to report strong revenue growth for the second quarter. Operationally our results improved sequentially and we are optimistic about our future growth in each of our three primary product segments," said Norbert Sporns, president and CEO. "We are laying the foundation to deliver long-term value to our shareholders. We continue to focus on execution, including increased sales of our diversified products, increased margin expansion, and vertical integration in the production of our all-natural tilapia aquaculture bio-mass, which will further reduce the costs of production and increase long-term profitable growth and cash flow generation."
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