MISSISSAUGA, ONTARIO — After a short-term decline in the first quarter, Maple Leaf Foods Inc. remains optimistic about its performance following second quarter results. The company said it is on track to meet its 2024 priorities and to execute a transformative spinoff of its pork business.
For the period ended June 30, 2024, the company reported a net loss of C$26.2 million ($27.47 million), equal to C21¢ (15¢) per share on the common stock, an improvement from last year’s loss of C$53.7 million, or C44¢ per share.
Total quarterly sales dipped to C$1.26 billion ($918 million), a 4% drop compared to C$1.27 billion from the same period last year. Adjusted operating earnings increased year-over-year to C$78.1 million ($56.88 million) compared to C$45.9 million.
“Several key elements contributed to our performance, including 3.2% year-over-year sales growth in our prepared meats business, improved pork market conditions, growth in our sustainable meats portfolio, better overall sales mix and contributions from our large capital projects,” said Curtis Frank, president and chief executive officer of Maple Leaf Foods.
Overall, sales in the Prepared Foods business increased approximately 1%, which was driven in part by success in the prepared meats segment. Maple Leaf noted that the 3.2% sales growth in prepared meat was partially offset by declines in poultry and plant protein of 3.9% and 2.5%, respectively, year-over-year. Sales in the Pork operating unit did not see the same success, decreasing 4.2% compared to last year.
Currently, Maple Leaf is prioritizing disciplined capital management, evident in its drop of capital expenditures in the second quarter 2024 to C$16 million ($12 million) compared to $53 million ($39 million) the same period a year ago.
Maple Leaf’s main focus is on the move to separate its pork business, creating two publicly traded companies, which was announced in July.
“Looking ahead, we are on a clear path to unleashing the potential of our business by separating into two independent public companies, each primed for growth and positioned to be a leader in its field,” Frank said. “I am confident, that these two companies — Maple Leaf Foods and the new Pork Company — will unlock the value of their respective organizations for the benefit of all stakeholders, with dedicated management teams and the financial independence to pursue their own value creation strategies. This will be the next exciting milestone step in executing the Maple Leaf playbook.”