High Liner Foods, a supplier of private label seafood products, has shared its Q1 financial results, showing increased sales and gross profit for the Nova Scotia-based company.
For the period ended April 1, sales increased by $34.5 million, or 11.7% year-over-year, to $329.2 million, and sales volume increased by 3.6 million pounds, or 4.9%, to 77.0 million pounds.
The company’s foodservice business grew in the quarter due to increased sales in newer product lines, new business and an increase in its contract manufacturing business. Sales volume decreased in retail due to consumers becoming more price-conscious and purchasing less seafood.
Gross profit increased 10.3% year-over-year to $68.4 million compared to $62.0 million. Adjusted EBITDA was $31.2 million, a 10.2% increase from $28.3 million in Q1 2022
"Q1 2023 was another strong quarter for High Liner Foods marking eight consecutive quarters of Adjusted EBITDA growth," said High Liner Foods President and CEO Rod Hepponstall. "Our foodservice business continues to perform particularly well. We are leveraging the diversification of our business, along with our branded and value-added offering and a data-driven approach, to inspire greater seafood consumption and to support our customers by offering consumers assurances of quality and value, in a time of economic challenges."
Looking ahead to the remainder of the fiscal year, High Liner Foods said it is well positioned to invest in growth, explore opportunities for transformative growth through potential M&A activities to build shareholder value and continue to grow shareholder dividend.
"Inflationary and economic pressures are increasingly impacting consumer purchasing decisions related to dining outside the home and grocery purchases,” added Hepponstall. “While we are not immune to the potential negative impact on our business, we are well positioned to navigate evolving market conditions as a result of the diversification of our business, customers and portfolio."