LUNENBURG, N.S. – Seafood company High Liner Foods Inc. (TSX:HLF) saw its third-quarter profit rise to $6.7 million, up more than nine per cent, helped by higher sales and a recent U.S. acquisition.
Sales in the quarter were up 12.1 per cent to $161.7 million and arnings per share were 44 cents in the quarter, versus 40 cents a year ago, the company said Wednesday
“The momentum from our solid performance during the first half of the year has carried into the third quarter of 2011, which bodes well for another strong year for High Liner Foods,” chief executive Henry Demone said in a news release.
Demone said the company’s U.S. operations were strengthened by its acquisition of Viking Seafoods last December across both retail and food service channels and it also had strong results in Canada.
“Sales volume and revenue growth in our Canadian operations was positive overall continuing the strong year-to-date results in food service and the turnaround in retail seen in the second quarter,” Demone said.
“Our new product innovations, cost-reduction strategies, recovery of stock option expense, and the positive effect of the stronger Canadian dollar on our cost of sales, helped to drive our strong results into the second half of 2011.”
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Canada’s largest seafood processor and marketer has said it’s in talks to buy Icelandic Group’s U.S and Asian processing plants, which had sales of $263 million last year.
Iceland Group couldn’t be reached for comment on Wednesday. It’s a major seafood supplier in Europe as well as a large seller of fish products to the U.S. food service market.
High Liner said it had no further comment on the negotiations at this time.
If High Liner succeeds in its expansion quest, it would double its U.S. business. The company had 2010 sales of $585 million and about half of that came from the United States.
High Liner has said if the acquisition goes ahead, it’s aiming become the North American leader in value-added seafood, which is comprised of fish and seafood products with sauces, glazes and crumbs that are ready to cook and serve.
Looking ahead, High Liner said despite high seafood costs it expects solid financial results for the rest of 2011.
“We look to continued sales expansion and distribution growth with an ongoing focus on cost-reduction initiatives as we strive to deliver strong financial results,” Demone said.
High Liner has its head office in Lunenburg, N.S., and is one of North America’s leading producers of frozen seafood, including shrimp, salmon, pollock, tilapia and cod. it employs more than 1,000 people.
Its branded products include High Liner, Fisher Boy, Mirabel and Sea Cuisine brands 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 High Liner slipped 10 cents to $14.20 in light trading Wednesday.
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