Lunenburg seafood darling High Liner Foods Inc. may not have the rosiest financial results for 2011.
But Henry Demone is confident the horizon is bright for the Nova Scotia frozen seafood company.
In a news release about High Liner’s fourth-quarter and fiscal 2011 results, the president and chief executive officer pointed to two takeovers and a number of feats last year that positioned the seafood processor and packager for a strong future.
“By strengthening our industry leadership position, we believe our strategy creates incremental value to our shareholders,” he said.
But despite the bright outlook, High Liner’s results left something to be desired.
The company posted a fourth-quarter loss of $3 million or %20 cents per share, down from a net income of $1.7 million or 11 cents per share in the same quarter last year.
The slip was due to a one-time charge of $8 million related to its US$232-million acquisition of the Icelandic Group’s U.S. and Asian operations last December.
Stripping out the effect of one-time items, High Liner said its adjusted earnings for the quarter were $5.7 million or 38 cents per share. In the same period a year before, adjusted earnings were $3.3 million or 21 cents per share.
While the company grappled with a strong Canadian dollar, the acquisitions of Icelandic and Viking Seafoods helped push the company’s sales up this year by 14.3 per cent to $668.6 million, compared to $584.7 million in 2010.
The acquisition of Viking and Icelandic “now makes us the category leader in food service value-added frozen seafood in North America,” Demone said.
“Icelandic Seafood is an established leader in the U.S. food service market, and we believe that the combination with High Liner will enable us to leverage a more efficient supply chain and stronger purchasing power to address a larger customer base.
“Sales volume from our U.S. operations grew in both our food service and retail businesses at 32.1 per cent and 12.5 per cent, respectively.
“Our Canadian operations saw unchanged sales volumes due to a challenging retail market but recorded a 4.1 per cent increase in sales.”
Meanwhile, High Liner reported sales volumes of 51.2 million pounds during the quarter, up from 43 million pounds a year before. Sales rose to $176.5 million from $140.8 million in the same period of 2010.
The company has warned that its raw materials prices, especially for shrimp and salmon, are on the rise. It has also been struggling with the impact of a strong loonie, especially on its U.S. operations.
High Liner’s branded products include High Liner, Fisher Boy, Mirabel and Sea Cuisine brands that it sells to grocery and big-box stores.
The company also sells its High Liner, FPI, Mirabel and Viking food service products to restaurants, hospitals and schools, and is a big supplier of private label seafood.
Shares in the company closed down 32 cents to $18.63 in trading on the Toronto Stock Exchange on Wednesday.
With The Canadian Press
