Maple Leaf Foods Reports Results for Fourth Quarter and Year-End 2012

Maple Leaf Foods Inc. reported its financial results for the fourth quarter and fiscal year ended December 31, 2012. Highlights for the fourth quarter of 2012 include: Adjusted operating earnings increased 58.9% to $91.3 million; net earnings increased to $56.8 million from $9.2 million last year

Highlights for the full year 2012 include: Adjusted Operating Earnings increased 8.1% to $280.0 million following strong second half results; Net earnings increased 40.5% to $122.7 million

"We are very pleased with our results for the fourth quarter and 2012 in total. They reflect steady, ongoing progress in realizing earnings growth towards our financial targets," said Michael H. McCain, president and CEO. "The challenging market conditions in primary pork processing margins and consumer bread demand were significant headwinds for the year; however, we achieved an 8% increase in operating profits for the year and 59% in the fourth quarter despite these challenges. This is a strong testament to the strength of our business and our strategic initiatives, and the extraordinary contribution of our people. The effects of food inflation driven by the North American droughts of 2012 will be felt mostly in the first half of 2013. As a result, we expect some short-term volatility in our earnings as we pass those cost increases on in the marketplace. Beyond this, our strategic initiatives will accelerate in 2013 and contribute to continued margin growth."

Sales for the fourth quarter declined 3.3% to $1,204.8 million compared to $1,245.3 million last year, or 2.2% after adjusting for the impacts of divestitures and foreign exchange, primarily as a result of lower sales volumes. For the full year, sales were $4,864.8 million, down 0.6% from $4,893.6 million in 2011, or 0.3% after adjusting for divestitures and foreign exchange.

Adjusted Operating Earnings for the fourth quarter were $91.3 million compared to $57.4 million last year, due to strong improvements in the Meat and Bakery Products Groups. For the full year, Adjusted Operating Earnings increased 8.1%, to $280.0 million compared to $259.0 million last year due to increased earnings in the Meat and Bakery businesses.

Adjusted Earnings per Share were $0.38 in the quarter, compared to $0.21 last year. For the year, Adjusted Earnings per Share were $1.06, compared to $1.01 last year. Adjusted Earnings per Share in 2011 included $12.2 million ($0.09 per share) of tax adjustments related to a prior acquisition.

For the fourth quarter, net earnings were $56.8 million compared to $9.2 million last year. Net earnings included $12.8 million ($0.07 per share) of pre-tax costs related to restructuring activities (2011: $32.2 million, or $0.17 per share). For the full year, net earnings were $122.7 million ($0.83 basic earnings per share) compared to $87.3 million ($0.59 basic earnings per share) last year. Net earnings for the year included $47.5 million ($0.25 per share) of pre-tax costs related to restructuring activities (2011: $79.8 million, or $0.41 per share).

Source: Maple Leaf Foods

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