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