Maple Leaf: Dramatic Turn-around in Profitability

CANADA - Financial results reported yesterday by Maple Leaf Foods for the second quarter of 2009 show a dramatic turn-around in profitability, writes Bruce Cochrane.
calendar icon 30 July 2009
clock icon 3 minute read

Maple Leaf Foods financial results for the second quarter of 2009, which ended 30 June, show adjusted operating earnings increased by 131 per cent pushing adjusted earnings per share to 12 cents compared to a loss of one cent per share last year.

Maple Leaf president and CEO Michael McCain reports the stronger results reflect good performance in the company's bakery businesses, the benefits of restructuring its hog and fresh pork operations and steady improvement in its prepared meats business as it recovers from last August's product recall.

Michael McCain-Maple Leaf Foods

I would say that the second quarter demonstrates significant earnings improvements although still below the full business potential of our assets.

Our bakery group has benefited from lower commodity costs which have yielded a normalization of their earnings as we had previously indicated it would as those commodity costs fell in line.

Our prepared meats business is on an improving trend line however still well behind where we expect it to be in pre-recall levels in its operating performance.

Protein organization is yielding tremendous ongoing benefits which have helped sustain us through this very challenging period.

Our focus of effort continues to be on full business recovery at consumer foods in our further processed business but we're also beginning to migrate back to our strategic agenda of substantial improvement in efficiency in our assets and organic growth.

Mr McCain says the second quarter showed a very material step forward.

He concedes the company has a lot of work left to do but it is very pleased with the progress.

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