Maple Leaf Foods saw a return to profitability during the first quarter of fiscal year 2024 after reporting a net loss during the same quarter one year ago. The Canadian protein producer was able to do this in spite of a small decline in net sales.
On May 2, the company reported the financial results of the first quarter, which ended on March 31.
During the first quarter, Maple Leaf Foods reported net earnings of CA$51.6 million (US$37.67 million), as opposed to a net loss of CA$57.7 million for the first quarter of fiscal year 2023.
The company achieved net sales of CA$1.15 billion during the quarter, which was a 1.5% drop from the CA$1.17 billion in net sales achieved one year ago.
Sales in the Prepared Foods operating unit decreased approximately 0.4%, with prepared meats increasing 2.9% offset by declines in plant protein and poultry of 5.7% and 7.1% respectively, compared to last year. Sales in the Pork operating unit decreased by 4.5% compared to last year.
However, Curtis Frank, CEO of Maple Leaf Foods, was not concerned about the drop in sales. Instead, he described it as a result of a decision that will set up a stronger future for the company.
“The modest decline we saw in overall sales compared to Q12023 was primarily a function of sourcing decisions to reduce outside purchases in poultry and pork, impacting sales in the short term while setting us up to deliver on our plans moving forward.”
As a consolidated protein company, Maple Leaf Foods has two operating units: Prepared Foods and Pork, which represent on average approximately 75% and 25% of total company revenue respectively. Prepared Foods combines the operations of prepared meats, plant protein, and poultry, which represent on average approximately 50%, 5% and 20% of total company revenue respectively.
