Industry News - PM

Maple Leaf Foods posts higher-than-expected Q4 earnings


By Chris Scott on 3/1/2016

Maple Leaf Foods today reported stronger operating earnings for the fourth quarter of fiscal 2015 in light of improved margins in its prepared meats subsidiary.

The Mississauga, Ont.-based processor reported adjusted operating earnings of 25 cents a share, or $33.3 million, versus a loss of 8 cents a share, or $23 million, in the same period one year ago. Adjusted earnings per share for the year reached 58 cents compared with a loss of 46 cents a share for fiscal 2014, the company added.

The average earnings estimate from industry analysts was 21 cents a share as the company continued its streamlining program launched late last year that included the elimination of more than 400 salaried jobs.

Maple Leaf Foods cited improved earnings from its prepared meats division thanks to both lower operating costs in its new prepared meats network for the earnings increases. The division posted a profit of $54.6 million in the fourth quarter versus a loss of $19.1 million in the same period in 2014. Additionally, a higher proportion of retail branded volume and better pricing for fresh pork and poultry also contributed to the improved financial results, the company said.

“We are entering 2016 with momentum, confident that the strategic goals of our transformational investments have been met, with only normal ramp-up inefficiencies in a single facility remaining,” Maple Leaf President and CEO Michael H. McCain announced in a news release. “Additionally, Maple Leaf is now a North American leader in the evolution of sustainability in our industry and sustainable protein production, which will underpin our growth well into the future.”


 
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