Maple Leaf Foods recorded a loss of CA$6.3 million (US$4.77 million) during the second quarter of its 2019 fiscal year.
The loss compares to net earnings of CA$34.9 million (US$26.43 million) for the second quarter of fiscal year 2019.
Factoring in the loss was a negative impact of CA$60.7 million (US$46 million), due to non-cash fair value changes in biological assets and unrealized losses on derivative contracts and higher interest rates as the company continues to invest in the business. Maple Leaf Foods also reported CA$63.6 million (US$48.2 million) in net debt related to construction capital.
The company is in the process of building a new poultry processing plant in London, Ontario, and a plant-based protein facility in Shelbyville, Indiana, United States.
The Canadian meat, poultry and plant-based protein company did see net sales increase 12.5% for the quarter on a year-over-year basis, with those sales exceeding CA$1 billion. Excluding acquisitions, sales grew 3.5%, which the company said were “driven by a favorable mix due to food renovation supporting major brand strategies, fresh market values and pricing action taken in 2018 to mitigate inflationary pressures.”
Within the past 12 months, Maple Leaf Foods closed on the acquisition of VIAU Foods and two poultry plants and the associated supply from Cericola Farms.
Michael H. McCain, president and CEO of Maple Leaf Foods, in a press release said the company will continue to invest in itself to facilitate growth and shareholder value.
"We finished the quarter with strong top line growth and expanded our adjusted EBITDA margin," said Michael H. McCain. "Our meat protein business delivered excellent profit growth even with difficult market conditions, and we have materially stepped up our game as a leader in the plant-based protein market, positioning us to win in this high-growth business. Combined with our growth capital investments, we are pursuing compelling strategies to deliver outstanding shareholder return. Our vision to be the most sustainable protein company on earth will redefine Maple Leaf in the next decade."
