High Liner processing plant. (Photo: High Liner)
CANADAFriday, February 20, 2015, 01:10 (GMT + 9)
For the first time in its history, High Liner Foods reported annual sales that exceeded USD 1.0 billion, when announcing the result for full-year of 2014.
The company informed that its sales increased by USD 104.3 million, or 11 per cent yoy, amounting a total of USD 1.05 billion.
With respect to the fourth quarter of last year, High Liner explained that its sales reached USD 266.9 million, a figure representing an increase of 6.5 per cent compared with USD 250.7 million it obtained in the last three months of 2013.
The company’s CEO, Henry Demone, explained "Our two most recent acquisitions, American Pride and Atlantic Trading, helped bolster sales in 2014 by adding USD150.8 million to sales compared to American Pride sales of USD 39.7 million in 2013."
However, adjusted EBITDA decreased by 2.3 per cent, to USD 83.3 million compared to USD 85.3 million last year.
This results was due to the challenges the company faced regarding organic growth in its US foodservice business in 2014, combined with important increases in the cost of certain key species in 2014, which were not fully recovered in the year, regardless of a weaker Canadian dollar.
In the fourth quarter, adjusted EBITDA decreased by 10.1 per cent to USD 20.4 million compared to USD 22.7 million in the same period last year. Net income was reduced by USD 3.2 million, or 36.4 per cent yoy to USD 5.6 million.
The company explained that the results show the impact of the integration and external consulting costs, among other expenditures.
High Liner expects its acquisitions, which were successfully integrated this year, will continue achieving profitable growth.
The company's optimization project includes production cessation at its leased manufacturing facility in Malden, Massachusetts (US), in the second quarter of 2015.
The Board of Directors approved a quarterly dividend of CAD 0.105 (USD 0.08456) per share.