Restructuring-related charges hit Maple Leaf Foods‘ bottom line in the first half of 2014, despite the Canadian meats group seeing an increase in sales.
For the six months to the end of June, Maple Leaf reported a net loss of C$164.2m (US$150.8m) compared with a loss of C$69m for the same period a year earlier.
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During the period, Maple Leaf sold its Canada Breads bakery arm to Grupo Bimbo and then embarked on an organisational revamp as it started to do business as a pure-play meats company.
Maple Leaf made an operating loss of C$42m but that was down from C$60m in the first half of 2013.
Sales were up from C$1.45bn to C$1.5bn amid higher market prices for pork.
For the second quarter, the firm posted a loss of C$39.5m compared with C$38.4m for the same period a year earlier.
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By GlobalDataOperating profitability again improved from a loss of C$32.3m to one of C$12.1m in this year’s second quarter. Sales were up from C$759m to C$831m.
“We continue to make good progress on our strategic agenda, although the transitory cost of duplicative supply chains continues to be significant,” president and CEO Michael McCain said. “We are managing significant change along with our base business performance, and we are very satisfied with our progress towards our financial targets,” he added.
Shares in Maple Leaf had fallen 1% today to C$19.79 at 11.07 EDT.
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