Lunenburg, Nova Scotia, Canada-headquartered High Liner Foods logged a 3.9% decrease in third quarter sales of $230.8 million, as volume slipped by 4.4% to 64.4 million pounds. This was mainly due to a dip in US retail and foodservice business.
CEO and President Keith Decker nonetheless offered an optimistic take on the figures in a statement issued to investors on November 9. He commented:
“We are pleased that the results show continued improvement in gross profit and adjusted earnings resulting from lower raw material prices and incremental supply chain optimization savings in 2016. Lower sales volume in the third quarter primarily reflects the continued impact of lower overall demand for traditional breaded and battered frozen seafood products which we were unable to offset with sales from our new frozen seafood products that align with emerging consumer trends and preferences.”
Year to date, the company’s sales $746 million in sales are down by about 4% from last year.
Looking ahead, Decker stated: “We expect the trend of year-over-year improvement in gross profit and Adjusted EBITDA to continue in the fourth quarter of 2016. And while we expect our sales volume trend to improve, we do not expect to return to volume growth until our new product sales can offset the decline that the traditional breaded and battered category is experiencing.”
He concluded: “Completing outstanding supply chain optimization activities also remains a priority to achieve the full benefit associated with these activities, which we continue to believe will be a minimum of $20 million in annual costs savings on a run-rate basis, to be achieved by the end of 2016.”
About High Liner
High Liner Foods’ retail branded products are sold throughout the United States, Canada and Mexico under the High Liner, Fisher Boy, Mirabel and Sea Cuisine labels, and are available in most grocery and club stores. The company also markets branded products under the High Liner, Icelandic Seafood, FPI, Viking, Mirabel, Samband of Iceland and American Pride Seafood labels to restaurants and institutions, and is a major supplier of private label value-added frozen seafood items to North American food retailers and foodservice distributors.
