Maple Leaf Foods reported an 18.8 percent increase in net earnings for the second quarter of fiscal year 2017.
The Canadian meat, poultry and plant-based protein company posted net earnings of CA$37.3 million (US$29.9 million) for the quarter, up from the CA$31.4 million (US$25.1 million) reported for the same period during the previous fiscal year.
According to a press release from the company, the performance was strong during the quarter particularly due to fresh value-added pork due to an improved commercial mix and favorable market conditions, but that was partially offset by margin compression in prepared meats due to rising raw material costs. Maple Leaf Foods also reported that there were some non-routine operational costs during the quarter, which ended on June 30.
Sales also increase
Maple Leaf Foods also saw substantial growth in sales during the quarter. Sales increased 8.3 percent to CA$925.9 million (US$741.4 million) but that increase after being adjusted for the impact of foreign exchange and acquisitions was measured at a 5.7 percent increase. The company reported increased sales volumes in prepared meats, value-added fresh pork and poultry, as well as a full quarter of sales of Lightlife Foods sales. Maple Leaf Foods announced on March 10 that it had completed its acquisition of Lightlife Foods.
Michael H. McCain, president and CEO of Maple Leaf Foods, was upbeat about the company’s performance, both during the second quarter and first half of the fiscal year, as well as its upcoming quarters.
“We delivered excellent second-quarter results with continued earnings growth,” he said.
“Moving forward, we are focused on accelerating profitable growth, investing in our brands and building our leadership in sustainability.”