Maple Leaf Foods reports $53.7M net loss in Q2 as company faces inflationary pressure

MISSISSAUGA, Ont. –

Maple Leaf Foods Inc. mentioned it misplaced $53.7 million in its most up-to-date quarter because it grappled with inflation and different market headwinds.

The Mississauga, Ont.- primarily based meals firm’s internet loss for the second quarter amounted to 44 cents per primary share in contrast with a internet lack of $54.6 million or 44 cents per primary share a yr earlier.

Adjusted working earnings for the interval ended June 30 had been $45.9 million in contrast with $23.6 million within the second quarter of final yr.

Higher curiosity bills additionally weighed on Maple Leaf’s earnings, the corporate mentioned, as charges elevated and it spend extra on strategic capital expenditures.

Sales within the quarter totalled $1.26 billion, up from $1.19 billion a yr prior. Higher volumes and costs helped increase gross sales within the second quarter, the corporate mentioned.

Its meat business alone contributed the majority of these gross sales, although gross revenue for meat protein was slimmer because of headwinds within the pork market and better prices, partially offset by larger costs.

The firm expects mid-to-high single-digit gross sales progress for meat protein merchandise in 2023, helped by progress within the U.S. market and sustainable meat.

Meanwhile, Maple Leaf mentioned its plant protein division made $36.7 million in gross sales throughout the quarter, down from $40.8 million final yr. The division noticed decrease gross sales volumes that had been partially offset by pricing motion in earlier quarters to mitigate inflation, the corporate mentioned.

The firm introduced in late 2021 that it was launching a complete assessment of its technique for the plant protein division after seeing a slowdown in progress charges for the class. It discovered that the very excessive progress charges for plant protein merchandise predicted by many trade specialists possible will not come to move, Maple Leaf mentioned.

It now expects extra modest progress for plant protein, with a brand new objective to ship impartial or higher adjusted earnings earlier than taxes, curiosity, depreciation and amortization within the second half of 2023.

The monetary outcomes come a day after the corporate’s board permitted a quarterly dividend of 21 cents per share and 84 cents per share on an annual foundation.

This report by The Canadian Press was first revealed Aug. 3, 2023.