Q2 2026 High Liner Foods Inc Earnings Call Transcript
Key Points
- Adjusted EBITDA increased 20.3% year-over-year to $30.2 million, with margin expanding to 11.2% from 10.5%.
- Sales volume grew 4% to 57 million pounds, driven by sustained demand, new product innovation, and contract manufacturing.
- Retail performance remained strong, with improved fill rates and growth in higher-margin products like skin pack and Sea Cuisine.
- The company received $7.9 million in IEPA tariff recoveries in Q2 and an additional $27.9 million after quarter-end, providing cash flow support.
- New product launches, including Sea Cuisine Skillet meals and Guinness battered fish strips, are expanding distribution and driving category growth.
- Gross profit decreased 6% to $50.1 million, with gross margin down 370 basis points to 18.6% due to inflation and tariffs.
- The company incurred a $10.1 million inventory loss from a third-party warehouse fire, impacting reported net income.
- Net income fell 40% to $5.1 million, and diluted EPS dropped to $0.18 from $0.28, reflecting higher costs and expenses.
- Net debt increased to $335.8 million, with leverage at 3.6 times adjusted EBITDA, above the long-term target of 3 times.
- Ongoing inflation in raw materials, fuel, and tariffs continues to pressure margins, with expectations of further cost increases in pollock and pink salmon.
Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Highliner Foods Incorporated conference call for results of the second quarter of 2026. (Operator Instructions) Friday, August 14th, 2026 at 10 a.m. Eastern time for replay purposes. And I would like to turn the call over to Matt McDonald, Vice President of Finance and Investor Relations for Highliner Foods. Please go ahead.
Good morning, everyone. Thank you for joining the Highliner Foods conference call today to discuss our financial results for the second quarter of 2026. On the call from Highliner Foods are Paul Gior, Chief Executive Officer Kimberly Stephens, Chief Financial Officer and Anthony Rosetta, Chief Commercial Officer. I would like to remind listeners that we use certain non-IFRS measures and ratios when discussing our financial results, as we believe these are useful in assessing the company's financial performance. These measures are fully described and reconciled to IFRS measures
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