Dollar hits Canadian profitsThis article was originally published in Foodnews
CANADA's Clearwater Seafoods, which specialises in premium, wild, eco-labelled shellfish products, has reported a decline in sales revenue and profit for the first half of this year, compared with 2009. However, the firm blames this on the rise in value of the Canadian dollar. During the second quarter of 2010, strong sales volumes, higher selling prices, lower costs and expenses offset 83% of the negative impact of the exchange rate, Clearwater says. In the first half of this year, the company's sales totalled CAD127.9 million and EBITDA was CAD13.6 million (USD12.8 million), compared with CAD141.2 million and CAD17.9 million respectively in 2009. Strong and accelerating demand for core products has allowed Clearwater management to execute planned price increases for the majority of species, including scallops, clams plus cooked and peeled shrimp. Plans are in place to implement further increases in the remainder of the year. The firm expects that its second half results will be stronger than the first half, regardless of the negative impact of the exchange rate.