High Liner Foods fights through pandemic
High Liner Foods, a frozen seafood supplier to major private label brands throughout the United States and Canada, reported some gains in gross profit, despite a dip in sales volume for the fourth quarter, due to challenges to the business during the COVID-19 pandemic.
For one, the company’s foodservice business was hurt by restrictions imposed during the pandemic, however demand was high in retail, accelerating sales volume in that area, the company said. Despite the challenges, High Liner Foods reported that gross profit as a percentage of sales increased to 21.5% increase and gross profit decreased by 4.3% to 177.9 million for the 53 weeks ended Jan. 2.
Net income increased by $18.5 million, or 179.6%, to $28.8 million compared with $10.3 million and diluted earnings per share ("EPS") increased to $0.83 per share compared with $0.30 per share, according to the company’s latest financials. Additionally, sales volume decreased by 17.9 million pounds or nearly 7%.
"We could not be more proud of our performance in Q4 and throughout Fiscal 2020," said Rod Hepponstall, president and CEO of High Liner Foods. "While prioritizing the health and safety of our employees and supporting our customers through the pandemic, we delivered record annual EBITDA margin as a percentage of sales, despite the challenges presented by COVID-19."
Lunenberg, Nova Scotia-based High Liner Foods, in addition to its private label business, also produces the High Liner, Fisher Boy, Mirabel Sea Cuisine and Catch of the Day labels.
"With a strong balance sheet, improved cash flow and a considerably improved leverage ratio, achieving our long-term target of 3 times, we are well equipped to invest in our business and build upon our leadership in branded value-added seafood in North America,” Hepponstall said. "Looking ahead, we are well positioned for further profitability and revenue growth in 2021 and we remain steadfast in our commitment to the health and safety of our employees and support for customers as we collectively continue to navigate through the pandemic."