High Liner Foods Inc
TSX:HLF
High Liner Foods Inc
High Liner Foods, Inc. engages in the processing and marketing of prepared and packaged frozen seafood products. The company is headquartered in Lunenburg, Nova Scotia and currently employs 1,102 full-time employees. The firm produces a range of products from breaded and battered items to seafood entrees, which are sold to North American food retailers and foodservice distributors. The Company’s retail channel includes grocery and club stores and its products are sold throughout the United States and Canada under the High Liner, Fisher Boy, Mirabel, Sea Cuisine and Catch of the Day labels. The foodservice channel includes sales of seafood that is usually eaten outside the home and its branded products are sold through distributors to restaurants and institutions under the High Liner, Mirabel, Icelandic Seafood and full prescribing information (FPI) labels. The company owns and operates over three food-processing plants located in Lunenburg, Nova Scotia (N.S. ), Portsmouth, New Hampshire and Newport News, Virginia.
Sales Growth: High Liner Foods delivered a 9.8% year-over-year increase in sales, reaching $239.6 million, driven by volume gains and effective Lent promotions.
Volume Increase: Sales volume grew 6% to 54.8 million pounds, with double-digit growth in core U.S. retail brands and strong Canadian performance.
Margin Pressure: Gross margin percentage decreased by 170 basis points due to higher raw material costs and tariffs, with management unable to fully pass on these costs in Q2.
Profitability: Adjusted EBITDA rose 5.5% to $25.1 million, while reported net income dropped 56% due to prior year legal settlement benefits and current acquisition costs.
Acquisition: The company closed its acquisition of Mrs. Paul's and Van de Kamp's brands from Conagra, aiming for future cross-selling and cost synergies.
Outlook: Management expects to offset most cost pressures with pricing in the second half, maintain margin discipline, and deliver adjusted EBITDA growth for the year.
Leverage: Net debt increased to $275.9 million, with net debt to adjusted EBITDA at 2.7x, still below the company's target of 3x.
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