Maple Leaf Foods earnings slide in third quarter

Maple Leaf Foods saw a decline in net earnings and net sales for the third quarter of fiscal year 2018, the company reported on October 25.

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(fintastique, Bigstock)
(fintastique, Bigstock)

Maple Leaf Foods saw a decline in net earnings and net sales for the third quarter of fiscal year 2018, the company reported on October 25.

The Canadian meat, poultry and plant-based protein company noted that net earnings for the third quarter decreased to CA$26.6 million (US$20.4 million), compared to CA$37.6 million (US$28.9 million) for the third quarter of the 2017 fiscal year.

According to a press release from the company, continued growth in value-added pork and poultry and plant protein was more than offset by adverse underlying market conditions, including heightened volatility in hog prices, and strategic investments in food renovation to support long-term growth and market leadership in the company’s major brands. The third quarter results were also impacted by changes in the fair value of biological assets and derivative contracts, the company stated.

Sales for the third quarter of 2018 decreased 3.7 percent to CA$874.8 million (US$671.3 million) or a decrease of 1.6 percent after adjusting for International Financial Reporting Standard (IFRS) 15 and acquisitions. The company, according to the press release, benefited from growth in sustainable meat products, improved mix in branded prepared meats and a continued increase in plant protein. However, this positive performance was more than offset by lower fresh market values.

 “It was a challenging period driven by temporary global trade instability, but our performance held up exceptionally well reflecting the strength of our balanced portfolio and commercial momentum in our business,” said Michael H. McCain, president and CEO of Maple Leaf Foods. “These abnormal markets have no impact on our core business strategies or our longer-term financial goals. We are focused on key levers of value creation over time, including our sustainability agenda, our brands, strategic acquisitions and cost reduction.”

Maple Leaf Foods’ third quarter ended on September 30.

Since that time, the company finalized its acquisition of Cericola Foods assets, signed an agreement to acquire VIAU Foods, and launched a new subsidiary, Greenleaf Foods, which will involve the company’s plant-based protein products.

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