High Liner sees lower sales volumes but higher revenues in 2021

High Liner Food’s experienced a slight decline in sales volume in 2021, but a significant increase in sales value for the fourth quarter and for the year, and the company was successful in meeting its goal of generating a profit of one year. year-over-year before interest, taxes, amortization, and amortization improvement (EBITDA), according to its latest financial results.

The company posted revenue of $227.8 million (€201.3 million) in the fourth quarter of 2021, compared to $198.4 million (€175.3 million) during the same period of 2020, and a gross profit of 48.6 million dollars (42.9 million euros) against 43.5 million dollars. (38.4 million euros). At the same time, the company’s sales volume fell from 59.6 million pounds in the fourth quarter of 2020 to 58.7 million pounds in the fourth quarter of 2021.

For the year, the value of the company’s sales increased by $47.9 million (42.3 million euros), or 5.8%, to reach $875.4 million (773.7 million) from 827.5 million (731.3 million euros) in 2020. year, by contrast, fell 7.2 million pounds, or 3 percent, to 233.7 million books.

High Liner’s adjusted EBITDA for the fourth quarter of 2021 decreased by USD 600,000 (EUR 530,000) to USD 20.6 million (EUR 18.2 million). However, for the full year, the company’s adjusted EBITDA increased by $2.4 million (2.1 million euros) or 2.7%, from $88 million (77 .7 million euros) in 2020 to 90.4 million dollars (79.8 million euros) in 2021.

“We are delighted, despite the multiple headwinds environment, to have increased our sales, to have increased our profitability and, for the third consecutive year, to have achieved our objective of generating an improvement in EBITDA from year over year,” said Rod Hepponstall, President and CEO of High Liner. “This is the result of executing our value-added brand strategy, strong execution across our organization and the excellent work of our supply chain team to maximize the availability of our products. mitigating the impact of major global issues.”

The increase in adjusted EBITDA marks the third consecutive year of improvement for High Liner and a significant gain over the company’s results in 2018, when it posted adjusted EBITDA of $12 million (10.6 million EUR). Hepponstall was hired in April 2018 and shortly after taking the reins, he implemented a realignment plan to address declining sales and EBITDA. The company’s 2021 net profit reflects changes from Hepponstall, with the company posting full-year 2021 net profit of $42.2 million (€37.3 million), down from 28, 8 million dollars (25.4 million euros) in 2020. It also represents a significant increase compared to 2019, when the company recorded a net profit of 10.2 million USD (10.2 million EUR). During the year 2018, the company’s adjusted EBITDA amounted to 62.4 million USD (55.1 million EUR), with a turnover of 1.04 billion USD (919 million EUR) .

Hepponstall said the company’s success amid the COVID-19 pandemic is a testament to its resilience. However, in the fourth quarter of 2021, the company said supply chain issues had impacted its four million pound sales volumes as it experienced “shipping delays and supply issues in raw materials due to global labor shortages, limited availability of shipping containers, congestion and port closures.”

“We continue to benefit from our early action on supply chain diversification. However, given the scale of global supply chain challenges, we have not been able to fully meet demand. for our products in the fourth quarter, which impacted overall volumes,” Hepponstall said. We will continue to explore all potential avenues to meet strong demand and build inventory in the face of supply challenges that we expect will prevail in the first half of 2022.”

The company said its restaurant business continues to rebound from lows caused by the COVID-19 pandemic, but supply chain challenges are hampering its growth. On a Feb. 23 investor call, Hepponstall said the company hasn’t seen a single quarter of full restaurant demand since the pandemic began.

High Liner’s chief financial officer, Paul Jewer, said the company was still feeling supply constraints in the first quarter of 2022.

“We believe we will still face challenges in the first part of 2022, primarily due to the processing capacity we see around the world,” Jewer said. “We expect that to start to improve as we enter the return half of 2022.”

Jewer said inflation also drove up costs for High Liner, but these were offset by price adjustments.

“The reality is nobody wants to pay more, but we’ve gotten really good at identifying that it’s a necessary cost increase,” he said.

Hepponstall said the company plans to continue its positive trajectory in 2022.

“We have demonstrated our resilience and ability to execute by achieving continued Adjusted EBITDA growth and strengthening our relationships with our customers during the COVID-19 pandemic,” Hepponstall said. “We are confident that we will continue to accelerate sales growth and deliver year-over-year Adjusted EBITDA growth in fiscal 2022 as we execute our strategy to be the leader in value-added branded seafood products in North America. »

Photo courtesy of High Liner Foods