Canadian food group Maple Leaf Foods has booked a drop in second quarter net profits.

Net earnings, which include a non-cash pre-tax charge of C$20.7m (US$20m), dropped to $3m in the quarter, compared to $4.9m last year.

The impact of the interest rate swaps was partly offset by the benefits of increased adjusted operating earnings and lower restructuring costs and interest expense.

Adjusted operating earnings increased 20% to C$52.2m, while sales decreased 4% to C$1.27bn.

Sales declined due to currency impacts on US and UK bakery operations and fresh pork sales, and lower sales volumes in prepared meats.

These impacts were partly offset by higher sales values of fresh pork.