Maple Leaf Foods Q2 2016 earnings hit CA$31.4 million
After posting a net loss of CA$7.5 million one year ago, meat and poultry company continues to rebound
Maple Leaf Foods reported net earnings of CA$31.4 million (US$23.8 million) during the second quarter of fiscal year 2016, a major turnaround from the net loss of CA$7.5 million (US$5.7 million) the meat and poultry company reported during the same period in 2015.
The latest quarter, which ended June 30, shows a continued trend of a return to profitability for the Canadian company after several years of operating at a loss it built new plants to replace outdated ones.
The company also reported net sales of CA$851 million (US$644 million), which is a 2.9 percent year-over-year improvement, once the impact of foreign exchange is factored in. According to a press release from the company sales of fresh poultry and fresh pork increased during the quarter, but sales of prepared meats declined slightly. The jump in sales of fresh poultry was attributed to higher branded sales volume and operating efficiency gains. Maple Leaf Foods’ focus on increasing its value-added pork business resulted in improved selling prices and volume, the company stated.
“Our performance was driven by strong commercial results across the business and continued efficiency gains in our plant network,” commented Michael McCain, president and CEO of Maple Leaf Foods. “Our team is focused on pursuing profitable growth, market expansion and further cost efficiencies.”