Maple Leaf Foods Inc. posted strong financial results for the third quarter with all parts of its business, including livestock, meat processing and bakery, showing improvements over the same period last year.
“Our operating income more than doubled in the third quarter, and our net income increased over three fold,” said president Michael McCain in a News release
news.
Sales for the third quarter ended Sept. 30 increased to $1.7 billion from $1.3 billion last year. Year-to-date sales increased to $4.6 billion from $3.8 billion, due primarily to the inclusion of results from Schneider Foods, which was acquired on April 5. Strong protein demand and higher hog prices also helped.
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Net earnings for the third quarter were $27.9 million compared to $7.2 million before restructuring costs of $6.9 million ($10.3 million pre-tax) in the third quarter last year.
Year-to-date net earnings were $73.5 million compared to $18.5 million before $11.7 million of restructuring costs last year.
The agribusiness group, which includes hog production, feed manufacturing and rendering, saw operating earnings increase 32 percent to $25.3 million.
This improvement was driven primarily by a 33 percent increase in hog prices compared to last year and strong performance in the rendering business, the company said.
The company owned about 19 percent of the hogs that it processed at the end of the third quarter.
The meat product group, including fresh, frozen and processed pork and poultry products, saw operating earnings climb to $15.3 million during the quarter from an operating loss of $9.3 million last year.
Bakery products group, comprised of Maple Leaf’s 84.7 percent ownership in Canada Bread Co., saw quarterly operating earnings increase to $27.8 million from $16.5 million last year.
The company said the results show the impact of low carbohydrate diets on white bread sales may be softening.
The results also reflect the company’s product line, which is weighted in favour of whole grain, organic and specialty breads.
