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Clearwater Continues Trend of Strong Results in Q1

10 May 2012

CANADA - Clearwater has announced that its first quarter results showed a trend of positive earnings with sales growing by 2.4 per cent to C$70.9 million and EBITDA growing by 10 per cent to C$11 million.

The 10 per cent EBITDA growth in the first quarter of 2012 came as a result of higher sales prices and higher sales volumes, partially offset by a shift to lower margin species and higher harvesting and procurement costs per pound in certain species.

The company also noted that gross margin grew by 6.2 per cent and that the company is on track with 2012 financial targets for creating shareholder value.

Outlook

Global demand for seafood is outstripping supply; creating favorable market dynamics for primary producers such as Clearwater.

Demand has been driven by growing worldwide population, shifting consumer tastes; and rising incomes and purchasing power of middle class consumers in emerging economies.

The supply of seafood is limited and is expected to lag the growing demand in the industry. This Supply-demand imbalance creates pricing power in which purchasers of seafood pay a premium to suppliers that can provide consistent quality, wide diversity and reliable delivery of seafood

Clearwater is well positioned to take advantage of this opportunity because of its licenses, premium product quality, diversity of species, global sales footprint, and year-round harvest and delivery capability.

Ian Smith, Chief Executive Officer, commented: "Management is satisfied with the progress made in the first quarter towards our 2012 annual plan as well as the increasing global consumer and customer demand for our premium, wild, sustainably harvested seafood.

"We will continue to execute with excellence against our overall business strategy as well as key cost-saving and productivity initiatives and we have every expectation that our earnings momentum will continue through the balance of fiscal 2012."

TheFishSite News Desk



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