According to the company, sales in terms of pounds was relatively unchanged at 39.5 million, but net income increased by 4.2 per cent to $4.4 million. “Our second quarter results were highlighted by growth in profitability across all key measures,” says Henry Demone, president and CEO, High Liner Foods Incorporated. “Our bottom line continued to benefit from lower input costs and a stronger Canadian dollar, as well as our ongoing commitment to cost management. We remain focused on executing against well-defined business objectives, which during the second quarter, allowed us to maintain strong profitability despite lower dollar sales resulting from a stronger Canadian dollar, lower prices on commodity products in a low raw material cost environment and higher promotional spending, which is netted against sales, to drive volume.”
As a result of the positive profit picture, Demone says the overall corporate outlook is solid. “Our performance in the first half of 2010 leaves us well positioned for the balance of the year,” he says. “We continue to benefit from the strong Canadian dollar as well as our commitment to containing costs wherever possible. In addition, although market prices for raw materials are beginning to increase, our existing supply contracts will mitigate much of the impact for the remainder of the year. Although we have seen improvements in our business alongside the gradual North American economic recovery, we remain cautiously optimistic within the context of the current economic outlook.”
