Canadian frozen food giant High Liner Foods saw its adjusted earnings before interest, taxes depreciation, and amortization (EBITDA) climb 29 percent to $25.3 million (€24.5 million) in the second quarter as it continued to benefit from stronger sales and price hikes.
Sales for the group during the quarter increased 33.6 percent to $253.5 million (€245.6 million), with volume up 16.7 percent to 58.8 million pounds. The recovery of the foodservice sector and solid retail performance fueled the sales increase.
"This quarter demonstrated that our longstanding efforts to ensure that we were well positioned for the full reopening of foodservice are paying off,” said Rod Hepponstall, CEO of High Liner Foods.
"We are encouraged that as consumers enjoyed dining on seafood outside of the home, our retail business remained strong and grew sales and volume compared to the same time last year.”
High Liner said it has not yet seen a major shift in consumer behavior in response to the current inflationary environment, but is well positioned to continue to benefit at different price points across its portfolio.
While demand for the company's products remains strong, like others in the industry, it is navigating global supply challenges exacerbated by the invasion of Ukraine, inflationary pressures on raw material and ongoing uncertainty related to the COVID-19 pandemic.
Shipping delays and raw material supply issues impacted the company's ability to maximize overall volume sales during the quarter.
During the quarter, the company continued to take "various actions to counteract the impact of the inflationary environment," which included “measured pricing actions," it said.
High Liner anticipates capital expenditures of approximately $25 million (€24.2 million) in 2022, as it modernizes its operations, explores automation opportunities and upgrades its facilities.
“I am confident that we will continue to grow sales and generate year-over-year adjusted EBITDA growth in fiscal 2022 as we execute on our strategy to be the leader in branded, value-added seafood in North America," added Hepponstall.