August 17, 2010

HQSM posts 29% increase in Q2 sales

HQ Sustainable Maritime Industries (HQSM) has announced its results for the second quarter of 2010, including a 29% increase in sales to US$20.7 million, up from US$16 million during the same time period in 2009.

The vertically-integrated Seattle company, which raises tilapia in China's Hainan province, credits the sales increase to new feed products it added late last year.

The company's aquaculture product sales increased 1% to US$10.6 million, compared to US$10.5 million in the second quarter of 2009. The increase is primarily credited to an overall volume reduction of 7% of fish products sold in the second quarter of 2010 compared to the second quarter of 2009, offset by average price increases.

Health and bio-product segment sales also increased to US$5.8 million in the second quarter of 2010, compared to US$5.5 million. In addition, the company's feedmill generated sales of US$4.3 million compared to sales of US$3.1 million in the first quarter of the year.

However, gross profit for the quarter decreased slightly to US$6.5 million, compared to US$6.6 million in 2009, which is primarily related to the health and bio-products and the feed products segments. Operating income also decreased to US$2.4 million from US$2.8 million in 2009, as did EBITDA to US$2.9 million compared to US$3.1 million.