Maple Leaf Foods Inc. sees stock drop amid disappointing quarter
Maple Leaf says the margin of its meat protein group fell short of guidance because of the wider economic challenges.
Maple Leaf Foods Inc. saw its share price drop as much as 18 per cent on the Toronto Stock Exchange after it said challenges in labour markets, supply chains and inflation pushed it to a net loss for the second quarter.
Maple Leaf said it had a net loss of $54.6 million, or 44 cents per share for the quarter ending June 30, compared with earnings of $8.8 million or seven cents per share for the same quarter last year.
Analysts had been expecting earnings of 12 cents a share, according to financial data firm Refinitiv.
The company says the margin of its meat protein group fell short of guidance because of the wider economic challenges, while it took a $18.6 million restructuring charge on its plant protein group as it looks to “rightsize” the business.
Total company sales were up 3.1 per cent to $1.2 billion, while sales in the plant protein group were down 15.2 per cent to $40.8 million.
Maple Leaf’s shares closed down $4.63, or 17.2 per cent, to $22.33 on the Toronto Stock Exchange after trading as low as $22.02 earlier in the day.