CANADA: Maple Leaf Foods H1 profits up
By Dean Best | 29 July 2011
Canadian food maker Maple Leaf Foods pointed to success in securing price increases and controlling costs after it reported an increase in half-year profits despite a fall in sales.
The company yesterday (28 July) reported a 41.5% jump in net earnings to C$35.1m (US$36.8m) for the first six months of 2011.
Maple Leaf posted a 56.6% increase in adjusted operating earnings to C$128.2m. The company said the figure excluded restructuring costs, a change in the fair value of non-designated interest rate swaps and gains or losses on commodity futures contracts - items that, it said, were "not representative of operational results during the period".
However, Maple Leaf's sales in the first half of 2011 fell 3.1% to C$2.39bn as sales from its meat products, protein and bakery divisions fell. Only its agribusiness unit saw sales rise.
In the second quarter, Maple Leaf's net earnings leapt from C$4.9m a year ago to C$24.6m. The company's adjusted operating earnings climbed 53.8% to C$77.5m. Sales, however, fell 2.6% to C$1.24bn.
President and CEO Michael McCain insisted the company had "delivered outstanding results" and its "ninth consecutive quarter of earnings growth".
He added: "We are successfully managing the impact of rising costs through price increases and cost reduction initiatives, and our value creation plan is on track and contributing to earnings. We are making steady progress in increasing our profitability and delivering on our commitments."
Click here for the full statement from Maple Leaf.
Sectors: Bakery, Financials, Meat & poultry
Companies: Maple Leaf Foods
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