Maple Leaf Foods net earnings up 70 percent
Canadian meat and poultry company continues to increase earnings after years of transitioning from old processing plants to new ones
Maple Leaf Foods reported net earnings of CA$31.8 million (US$23.9 million) during the third quarter of fiscal year 2016, representing a year-over-year improvement of over 70 percent.
The increased earnings are a continuing trend for the Canadian meat and poultry company, which for several years faced net losses as it took part in a strategic transition in which outdated processing plants were replaced with ones that are more modern and efficient.
The company’s net sales for the quarter reached CA$852.1 million (US$639.4 million), an improvement of 4.1 percent when compared to the third quarter of fiscal year 2015.
Meat Products Group
The company’s Meat Product’s Group, which accounts for most of the company’s sales and includes value-added prepared meats, lunch kits and snacks, value-added pork products and value-added poultry products, saw its sales during the quarter increase by 4.1 percent, amounting to CA$848.1 million (US$636.4 million). However, after adjusting the impact of foreign exchange, there was only a 2.8 percent year-over-year improvement.
According to a press release, sales in fresh pork increased as the company's focus on increasing its value-added pork business resulted in improved selling prices and increased volumes. Fresh poultry sales also increased due to stronger volume and an improved sales mix.
Maple Leaf Foods’ Agribusiness Group, which includes Canadian hog production operations that primarily supply the Meat Products Group with livestock, saw sales of just over CA$4 million (US$3 million), a small improvement when compared to the same quarter of the previous year.