Reported sales in USD surpassed the billion dollar mark for the first time in our history, rising 11.0 percent to $1.05 billion and resulting in compound annual sales growth of 16.7 percent since 2010. High Liner Foods’ financial results, however, were below expectations. Excluding the impact of the Atlantic Trading acquisition in Q4 2014 and the American Pride acquisition in Q4 2013, sales in domestic currency increased by only $16.1 million as we continued to face a soft sales environment in the U.S. foodservice sector along with significant increases in raw material costs and pricing pressure resulting from consolidation in the food retailing industry. Results were also adversely affected by a falling Canadian dollar which reduced reported sales by $22.2 million relative to the conversion impact in 2013. As a result of the same factors, adjusted EBITDA decreased by $2.0 million, as the positive impact of the Atlantic Trading and American Pride acquisitions, and lower distribution costs and higher margins in our U.S. business, were offset by lower sales volumes and lower margins in our Canadian business. Adjusted Net Income decreased by 6.1 percent to $38.8 million and diluted EPS based on Adjusted Net Income was $1.24 per share, reflecting a 2-for-1 split of High Liner Foods’ common shares on May 30, 2014.
While U.S. restaurant industry sales increased modestly during the past year, the casual dining segment, which is a key sales driver for High Liner Foods, is in a period of intense competition with “fast-casual” restaurants broadening and improving their menus to attract time-pressed and health-conscious consumers.
Within this environment, we have been working closely with customers to develop innovative new products, reduce the complexity and cost of our operations and deliver better value to our customers and consumers every day. We are dedicated to nothing less than building a culture of operating excellence that is the best in the business. As in past years, we are measuring our progress in the context of High Liner Food’s three most important strategic goals.
Record sales in excess of
$1 billion for the first time
Compound annual sales growth since 2010