Maple Leaf Foods Inc. reported its financial results for the second quarter, June 30, 2016. The company reported significant category and product innovation introduced during the quarter, led by the launch of Maple Leaf Canadian Craft. For the quarter, Maple Leaf reported net earnings of $31.4 million, compared to a net loss of $7.5 million last year.
"The strategic foundation we have built delivered a second consecutive quarter of double-digit EBITDA margin and product innovation at a level unprecedented in our history," said Michael McCain, President and CEO. "Our performance was driven by strong commercial results across the business and continued efficiency gains in our plant network. Our team is focused on pursuing profitable growth, market expansion and further cost efficiencies."
Sales for the second quarter were $854.6 million, compared to $820.8 million last year. Year-to-date sales were $1,651.5 million compared to $1,601.0 million last year. Net earnings of $73.7 million ($0.55 per share) increased from a loss of $10.4 million (loss of $0.07 per share) last year.
Sales in the second quarter of the Meat Products Group increased 4.1% to $851.0 million, or 2.9% after adjusting for the impact of foreign exchange. Prepared meats sales declined slightly, as the benefit of price increases implemented during the first quarter, to mitigate inflationary and currency impacts, was more than offset by a short-term volume decline in response to the price increase and the exit of some lower margin business. Sales in fresh pork increased as the Company's focus on increasing its value-added pork business resulted in improved selling prices and volume. Performance was also supported by favourable exchange rates. Fresh poultry sales increased due to stronger volume and an increased higher value sales mix.
Sales in the first six months increased 3.2% to $1,644.0 million, or 1.1% after adjusting for the impact of foreign exchange. The increase was due to similar reasons noted above.
Adjusted Operating Earnings in the second quarter for the Agribusiness Group, which includes hog production, decreased to a loss of $2.4 million compared to earnings of $4.1 million last year. In the second quarter of 2015, the company benefited from gains in its risk management program, which were not repeated in the second quarter of 2016. For the first six months, Adjusted Operating Earnings decreased to a loss of $10.1 million from earnings of $6.6 million last year, due to similar factors.
Source: Maple Leaf Foods