Leading Canadian value-added frozen seafood company High Liner Foods has announced it plans to make further strategic investments in Norwegian aquaculture companies Norcod and Andfjord Salmon.
High Liner said it will invest approximately $6.75 million in Norcod and $10 million in Andfjord Salmon in the coming weeks. The Canadian company is already a shareholder in both Norwegian firms, and said the investments "are aligned with High Liner Foods' goal to continue to position itself at the forefront of industry leadership".
High Liner said the forthcoming investments would be funded by the company's cash from operations, and are expected to close in March 2025.
In March last year, the Nova Scotia-based seafood company invested USD 5 million in Norwegian cod farmer Norcod, giving it an approximately 10% share ownership and a place on the board, assumed by High Liner President and CEO Paul Jewer.
Shortly afterwards, in May 2024, High Liner invested $10.0 million in Andfjord Salmon, a Norwegian land-based salmon farming company, translating to a 4.5% stake in the business.
"We have the balance sheet strength and flexibility needed to continue to navigate dynamic market conditions, while investing in our future and returning capital to our shareholders," said High Liner CFO Darryl Bergman, in a press release.
The planned investments were announced alongside High Liner's financial results for the fourth quarter of 2024, which showed strong profit growth in its fourth-quarter results for 2024, despite a slight decline in revenue.
The company’s Adjusted EBITDA rose 8.7% to $23.8 million, which the company said was driven by improved margins and cost efficiencies.
Meanwhile, High Liner saw sales volume grow 1.3% to 60.4 million pounds during the quarter, fueled by gains in the retail sector, while total revenue slipped 0.9% to $235 million, reflecting lower pricing and higher promotional activity.
"As we successfully navigated market pressures of 2024, we did so with the long-term health of our business and the category front of mind, strengthening relationships with our customer and supplier base, driving efficiencies across our global supply chain and diversifying our portfolio to include alternative species," said Paul Jewer, President and CEO of High Liner Foods.
"Importantly we achieved this while strengthening our balance sheet and increasing our financial flexibility, allowing us to support commitments to additional investments in Norcod and Andfjord. We also delivered value for our shareholders through continued dividend increases and execution against our expanded share buyback program," Jewer added.
Earlier this month, responding to the threat of tariffs to be placed on Canada by the Trump Administration in the U.S., Jewer stated in a LinkedIn post that the tariffs "create real challenges, not just for our business, but for the entire seafood industry and the hardworking people who rely on it".
However, the CEO expressed confidence, writing that "this is not the first time High Liner Foods has faced adversity in our 125-year history, including previously imposed U.S. tariffs, and we will rise to meet this challenge."
"We take pride in delivering the highest-quality seafood products in both Canada and the U.S., and that will not change. With our diverse and fully integrated supply chain, and manufacturing facilities located on both sides of the border, we are in a strong position to navigate these changes while continuing to serve our customers," Jewer continued.
High Liner Foods is one of North America's oldest seafood firms, and celebrated its 125th anniversary in 2024, having been founded in Lunenburg, Nova Scotia, in 1899.