High Liner products. (Photo: High Liner/FIS)
High Liner Foods increases sales in Q3
Friday, November 10, 2017, 23:30 (GMT + 9)
Frozen seafood company High Liner Foods Incorporated managed to increase sales volume in the third quarter of 2017 compared to the same period last year in part thanks to the acquisition of Rubicon in May.
Sales volume increased by 9.2 million pounds (14.3 per cent) in the analysed quarter, to 73.6 million pounds driven by higher sales volume in the United States (US) business.
“This was achieved in spite of continued impact on the business related to the product recall initiated in the second quarter of 2017. Most notably, sales volume and profit margins decreased in our Canadian business on a year-over-year basis, partially due to low product availability following the recall that hindered our ability to fully promote certain higher-margin products with retailers during the third quarter," explained Henry Demone, Chairman and CEO of High Liner Foods.
In the analysed quarter, sales increased by USD 52.3 million to USD 282.7 million and the gross profit grew by USD 2.3 million to USD 48.3 million.
On the other hand, the firm’s adjusted EBITDA decreased by 1.1 per cent, to USD 17.3 million and the net income also declined by USD 0.3 million to USD 6.0 million.
The company reported that the sale of its New Bedford scallop business in September last year had the impact of lowering sales volume by 1.0 million pounds.
Related to the Company's product recall in the second quarter of 2017, an additional USD 2.7 million in actual and estimated net losses related to the return of destroyed product and direct incremental costs were recognized.