Report by Clearwater Seafoods on its 2018 third quarter results.

Clearwater manages good Q3 with a slight sales increase

CANADA
Thursday, November 08, 2018, 23:40 (GMT + 9)

Good price, higher frozen-at-sea shrimp landings and an increase in clam sales in China contributed for Clearwater Seafoods to record a slight improvement in profits in the third quarter.

Photo: Google finance Market Summary > Clearwater Seafoods Inc | TSE: CLR

The firm reported an adjusted EBITDA of CAD 80.3 million (USD 61.3 million) for the first nine months of the year, from CAD 80.1 million (USD 61.1 million) in the same period in 2017.

Photo: Clearwater Seafoods Q3 Report

For the third quarter, the adjusted EBITDA was CAD 30.7 million (USD 23.4 million) from CAD 32.8 million (USD 25 million) in the same period last year.

Photo: Clearwater Seafoods Q3 Report

As to sales, they grew by 0.4 per cent year on year in the third quarter, to CAD 164.2 million (USD 125.3 million) but they declined by 3.1 per cent in the first nine months, to CAD 446.3 million (USD 340.5 million).

Photo: Clearwater Seafoods Q3 Report

As a percentage of sales, the adjusted EBITDA represented 18.6 per cent versus 18.0 per cent in the first nine months of 2017, a result that, according to the company, reflects strong sales mix, cost efficiencies and favourable net foreign exchange.

Photo: Clearwater Seafoods Q3 Report

The company pointed out that strong prices and increased landings for frozen-at-sea (FAS) shrimp and favourable sales mix for clams in the January-October period were offset by lower available supply and competitive conditions for scallop associated with increased US supply as compared to the same period in 2017. 

The gross margin as sales percentage for the third quarter of 2018 improved to 20.3 per cent versus 17.0 per cent in the prior year. Gross margin as a percentage of sales  improved to 18.6 per cent versus 18.1 per cent in the prior year.

Photo: Clearwater Seafoods Q3 Report

Clearwater highlighted that during the analysed period, the Department of Fisheries and Oceans (DFO) announced their decision to cancel the process to issue a fourth clam licence and confirmed that the remaining 25 per cent of the clam quota would be issued to Clearwater for 2018 and 2019.

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