Maple Leaf Foods, the Canada-based food group, has seen first-quarter profits drop by over a third due to high grain and wheat prices.


The company today (24 April) posted underlying operating profits of C$33.1m (US$32.6m) for the three months to the end of March – down 34% on the year.


Sales were down 8.5% to C$1.2bn but higher grain and wheat prices further depressed earnings. Wheat costs hit margins from Maple Leaf’s bakery business. Higher feed costs meant profits from Maple Leaf’s meat products group stayed flat, despite growth from packaged meats.


Maple Leaf admitted it had incurred “significant” losses from its hog production due to higher grain prices but president and CEO Michael McCain said he expects the upward momentum in commodity costs to be “temporary”.


McCain said: “We fully expect these to be difficult but transitory market conditions. Our underlying operations, in particular the value-added meats and bakery businesses, are very well positioned and early successes in the company’s protein restructuring is building a solid base for higher earnings.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.