Canadian shellfish giant Clearwater reported a 38 percent decline in second quarter earnings as the company's operations and markets were affected by the coronavirus pandemic.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter came in at CAD 18.9 million (€12 million/$14.2 million).
Sales for the period fell 31 percent to CAD 105.9 million (€67.7 million/$79.6 million), while gross margin reached 20.5 percent.
Clearwater's customers, supply chain partners, operations and employees have all been impacted by the coronavirus crisis.
"While we expect retail strength and foodservice softness to continue in the near term, our demand is recovering, Clearwater CEO Ian Smith said.
Foodservice demand collapsed as the pandemic swept across the world, although there are signs of recovery. Fears of a second wave of the virus, however, have food industry executives nervous.
All of Clearwater's vessels and plants remain operational with the exception of one seasonal shrimp secondary processing operation, which the company chose not to open due to weak demand.
The company said it incurred additional expense associated with COVID-19 of approximately CAD 5.8 million ($4.3 million/€4.9 million) in the first half of 2020. The increased costs, it said, were offset by a reduction of discretionary costs in operating expenses and government employment support programs of CAD 5.1 million ($3.8 million/€4.3 million)
"Government employee support programs have helped to keep our employees working or available to return to work as demand recovers." the company said.