Maple Leaf Foods reported net earnings of CA$48.8 million million (US$39.1 million) during the second quarter of fiscal year 2021, a significant decline from the CA$25.7 million recorded during the first quarter of fiscal year 2020.
The company attributed the decline to non-cash fair value changes in biological assets and derivative contracts in 2020.
"As we anticipated, our second quarter faced material market headwinds and a difficult year-over-year comparable quarter due to COVID-19 effects, and yet our business delivered excellent results," said Michael H. McCain, President and CEO.
"In Meat Protein, performance was impressive with sales growth of 7.4% and Adjusted EBITDA margins of 11.6%. We expect our margins to fully recover beginning in the third quarter. In Plant Protein, where we continue to invest for long-term growth, we expected our sales in the first and second quarters to come in soft. At the same time, we expect to return to our strategic growth targets or above in the second half of this year. Our brand momentum, innovation pipeline and customer activity all support this.”
The Meat Protein Group is comprised of prepared meats, ready-to-cook and ready-to-serve meals, value-added fresh pork and poultry products that are sold to retail, foodservice and industrial channels, and agricultural operations in pork and poultry, and includes the following brands: Maple Leaf, Maple Leaf Prime, Schneiders, Mina and Greenfield Natural Meat Co.
The Canada-based producer of meat, poultry and plant-based proteins, announced its most recent financial results on August 5. The first quarter ended on June 30, 2021.
Total company sales were up 5.9% to CA$1.16 billion, with the meat protein sales making the difference. Meat protein sales were up 7.4% on a year-over-year basis, the company reported, while plant-based protein sales declined 10.4%.
Maple Leaf Foods expects mid-to-high single high digit sales growth in the Meat Protein Group for the remainder of the year, with Plant Proteins increasing by at least 30% in the second half of 2021.
"During these challenging times, I continue to be inspired by our people, confident in the resiliency and effectiveness of our strategic Blueprint, and more optimistic than ever in achieving our long-term goals," concluded McCain.