July 25, 2008

 

Maple Leaf Foods incurs US$9.16 million loss in Q2 on high grain charges

 
 

Toronto-based Maple Leaf Foods saw net earnings in its second quarter plummet due to higher grain and fuel costs which impacted its mainstay products of bread and meat.

 

For the three months ended June 30, Toronto-based Maple Leaf reported a net loss of CAN$9.3 million (US$9.16 million) on total sales of CAN$1.4 billion for the period.

 

This is slightly smaller than a year ago, when the company had a net loss of CAN$1.71 million on sales of CAN$1.3 billion for its second quarter.

 

For the first half of the year, Maple Leaf Foods reported a loss of CAN$9.4 million on total sales of CAN$2.6 billion in 2008, compared with a profit of CAN$8.8 million on sales of CAN$2.6 billion for the first half of 2007.

 

The company sustained losses due to the fact that its main products - meat and bread, require grains as a raw ingredient, which were at record prices.

 

The challenges were not unexpected however.

 

CEO Michael H. McCain said in a company statement that the company foresaw that the first half of 2008 would be difficult due to inflation and volatility in the commodity markets, adding that the second half of 2008 should show a substantial recovery as markets stabilize and the early benefits of restructuring are realized.

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