High Liner Foods reported a Q2 sales volume increase of 1.1 million pounds, or 2.2%, to 50.4 million pounds compared to 49.3 million pounds during the same period in 2020. Turnover rose by $24.0 million, or 14.5%, to $189.8 million compared to $165.8 million during Q2 2020.
“We continue to be pleased with the performance and resilience of our business. In this quarter, compared to the same period last year, we saw growth in sales, gross profit, adjusted EBITDA and net income, reflecting our ongoing progress in executing on our strategy of branded value-added growth,” said Rod Hepponstall, president and chief executive officer of the Lunenburg, Nova Scotia, Canada-headqartered frozen seafood company. “On a two-year CAGR basis, we saw our gross profit increase by 1.7% and our Adjusted EBITDA increase by 4.6%, when compared to the second quarter of 2019.”
Hepponstall added: “We are thrilled that consumers across North America are starting to enjoy our value-added seafood in restaurants once again, and are encouraged by the pace of our foodservice business recovery as a result. In the face of global and industry supply challenges, we are working hard to meet customer and consumer demand for our products in both our foodservice and retail businesses where we benefit from diversification of species and supply as well as our North American scale.”
Gross profit as a percentage of sales rose 23.4% in Q2 2021compared to 22.2% ,and gross profit increased by $7.6 million, or 21.0%, to $44.4 million compared to $36.7 million;
Net income increased by $8.2 million, or 46.6%, to $25.8 million compared to $17.6 million and diluted earnings per share (“EPS”) increased to $0.74 per share compared to $0.51 per share
Adjusted net income increased by $5.7 million, or 121.3%, to $10.4 million compared to $4.7 million and Adjusted Diluted EPS1 increased to $0.30 per share compared to $0.14 per share.
On an overall basis, sales volumes increased year-over-year due to the steadily recovering foodservice business and volumes associated with new products and new business.
In the foodservice sector, customer demand continued to increase as Covid-19 related restrictions eased in certain regions across North America. In the retail segment, however, demand was lower than the same period in 2020 as a result of evolving consumer behavior during the coronavirus pandemic (SARS-CoV-2).
Global supply chain challenges impacted operations and related sales in both foodservice and retail businesses during the quarter. Specifically, shipping container shortages and raw material supply impacted the company’s ability to maximize volume sales during Q2. The company took all available steps to mitigate the impact of supply challenges and also enacted appropriate pricing actions to offset additional costs incurred.
High Liner Foods’ retail branded products are sold throughout the United States and Canada under the High Liner, Fisher Boy, Mirabel, Sea Cuisine, and Catch of the Day labels, and are available in most grocery and club stores. The company also sells branded products to restaurants and institutions under the High Liner, Mirabel, Icelandic Seafood and FPI labels and is a major supplier of private label value-added seafood products to North American food retailers and foodservice distributors.
