Maple Leaf Foods reported net earnings of CA$25.4 million (US$20.3 million) for the fourth quarter of the 2020 fiscal year, a 45.2% increase when compared to the fourth quarter of the previous year.
Meanwhile, the Canadian protein company’s quarterly sales grew 11.1% on a year-over-year basis to CA$1.13 billion, but an extra week in the quarter when compared to the fourth quarter of 2019 contributed to that sales growth.
For the full year, sales were CA$4.3 billion, up from the CA$3.9 billion recorded in 2020. The company attributed that improvement to strong growth in both the meat and plant protein businesses. The company’s net earnings rose from CA$74.6 million for fiscal year 2019 to CA$113.3 million.
"We began this unprecedented year with raw optimism from our business momentum, only to pivot in reaction to a global crisis," Michael H. McCain, the company's president and CEO said in a press release. "Our people and our strategies were tested and they excelled, demonstrating skill, speed, agility, and clear prioritization of action in protecting our people first while supporting all our stakeholders.”
"Our fourth quarter capped off a record performance year, with strong top-line gains coupled with solid adjusted EBITDA margin expansion. We have repositioned our portfolio towards two high-growth categories now representing 20% of our annual sales generating a compounded growth rate in excess of 25% over the last three years. Momentum softened in plant protein, with solid improvement in the core line-up offset by soft fresh and foodservice performance. We remain confident in our long-term position supported by innovation and brand investment. Society underwent incredible dislocation this year and our people bravely met the challenge."
Meat protein group performance
Maple Leaf Foods’ meat protein group is comprised of prepared meats, ready-to-cook and ready-to-serve meals, snack kits, value-added fresh pork and poultry products that are sold to retail, foodservice and industrial channels, and agricultural operations in pork and poultry.
The group saw its sales for the fourth quarter increase 11.3% to CA$1.08 billion. The company attributed that sales growth to a favorable mix-shift towards sustainable meats and branded products in Canada, strong double-digit growth in sustainable meats in the U.S., pricing actions implemented to mitigate inflation and other structural cost increases and an extra week in the fourth quarter of 2020.
Plant protein group performance
Maple Leaf Foods’ plant protein group saw its sales rise to CA$52.5 million, a year-over-year growth of 6.7% when the impact of foreign exchange is taken into consideration.
The extra week in the quarter, as well as pricing actions to mitigate inflation and structural cost increases were credited as reasons for the improved sales figures.
