August 4, 2014

Maple Leaf Foods sees net loss from price increases in Q2
 

 

For the first six months, Maple Leaf Foods saw net loss from continuing operations of CAD164.2 million, compared to a net loss of C$69.0 million last year.

"We implemented material price increases during the second quarter which going forward will fully offset significant raw material cost increases to date," said Michael H. McCain, president and CEO.

"As anticipated, there is a short-term impact on demand, which we expect will normalise in time. Our progress in converting to the new supply chain continues as performance improves in our Western facilities and commissioning of the new flagship plant in Hamilton, Ontario is underway.

Maple Leaf Foods has seen sales from continuing operations of CAD831.8 million for the second quarter, an increase of 9.6% from last year, or 8.2% after adjusting for the impact of foreign exchange, as higher pricing was partly offset by lower volume.

Sales from continuing operations of CAD1,543.1 million for the first six months was an increase of 6.5%, or 5.3% after adjusting for foreign exchange, due to the same factors.

Adjusted Operating Earnings for the second quarter was a loss of CAD12.1 million compared to a loss of CAD32.3 million last year, as improved market conditions in the Agribusiness Group than offset lower earnings in the Meat Products Group. For the first six months, Adjusted Operating Earnings increased but was a loss of CAD42.0 million compared to a loss of CAD60.1 million last year, due to similar factors.