Business & Policy
Maple Leaf Foods records record loss
By David Manly
Aug. 6, 2013 – Maple Leaf Foods Inc. recently reported its financial results for Q2 2013, which ended on June 30, 2013, with a significant net loss for the company.
According to the report, Maple Leaf experienced an overall net loss of $14.7 million, compared to a profit of over $20 million at the same time last year. As well, its adjusted operating earnings was $22.8 million, compared to $63.1 million in Q2 2012.
Michael H. McCain, the president & CEO, said that the market conditions from Q1 2013 affected Q2 earnings, but improvements were made in key areas.
He added in a statement: “Hog production returns, global pork markets and volatile raw material markets all contributed to a material year-over-year earnings decline. This was compounded by the costs of transition and start-ups in our new prepared meat manufacturing and distribution network. These factors more than offset strong growth in prepared meats volumes from earlier in the year and solid improvement in the Bakery segment, which we expect will accelerate. Market conditions are expected to improve and our commercial fundamentals are good. Overall, we are satisfied with our strategic progress, although we are now at the peak of change and expect earnings volatility through this transition.”
Additionally, oversall sales declines 3.7 per cent from last year, and the Meat Products Group (pork, poultry, turkey and prepared meats) saw sales decline 3.2 per cent to $751.3 million.