Maple Leaf Foods today (29 April) booked a jump in first-quarter net profit as debt costs fell – but the Canadian food group said a “weak” bakery performance had weighed on operating earnings.
The company posted net income of C$8.8m (US$8.8m) for the three months to the end of March, compared to C$2.9m a year earlier.
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However, adjusted operating earnings stood at C$33.9m, a “modest” increase from the $31.6m recorded in the first quarter of 2009, Maple Leaf president and CEO Michael McCain said.
“Our protein business continues to show substantial year-over-year improvement in performance, although the unexpected early rise in meat raw material costs has temporarily slowed the improvement curve,” McCain said.
“The bakery business experienced a weaker quarter due to performance in the UK and the North American frozen bakery business. However, we are seeing signs of improvement in both these areas as volumes recover and our cost reduction initiatives take hold.”
Sales declined 7% to C$1.19bn due to the impact of the strengthening of the Canadian dollar on fresh pork sales and the translation of bakery sales in the US and the UK to Canadian dollars.
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