High Liner Foods improves its sales in the second quarter of 2021
Canada-based High Liner Foods Incorporated, a value-added frozen seafood company, recently reported improved financial results for the second quarter of 2021.
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.
The second quarter numbers show improvement from the fourth quarter of 2020 for the seafood company.
"We continue to be pleased with the performance and resilience of our business,” said Rod Hepponstall, President and CEO of High Liner Foods. “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. 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."
Sales volume increased by 1.1 million pounds, or 2.2%, to 50.4 million pounds compared to 49.3 million pounds in quarter one, and sales increased by $24.0 million, or 14.5%, to $189.8 million compared to $165.8 million.
Gross profit as a percentage of sales increased to 23.4% compared to 22.2% and gross profit increased by $7.6 million, or 21.0%, to $44.4 million compared to $36.7 million.
Adjusted EBITDA as a percentage of sales remained consistent at 10.3% and Adjusted EBITDA increased by $2.5 million, or 14.6%, to $19.6 million compared to $17.1 million.
Two-year Compound Annual Growth Rate ("CAGR") for gross profit and Adjusted EBITDA was 1.7% and 4.6% respectively.
Net Debt to rolling twelve-month Adjusted EBITDA improved to 2.8x at July 3, 2021 compared to 3.0x at the end of Fiscal 2020 and 3.9x at June 27, 2020.
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 EPS increased to $0.30 per share compared to $0.14 per share.
"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,” said Hepponstall. “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."