Maple Leaf Foods Q2 profit plunges to $8.8 million despite growth in meat revenues
The Ontario-based food processing company earned $8.8 million in the second quarter, down nearly 66 per cent from $25.7 million a year earlier.
Maple Leaf Foods. Inc. says its net profit plunged in its latest quarter despite a six per cent growth in revenues.
The Ontario-based food processing company earned $8.8 million in the second quarter, down nearly 66 per cent from $25.7 million a year earlier, primarily due to non-cash fair value changes in biological assets and derivative contracts.
That amounted to seven cents per share, down from 21 cents per share in the second quarter of 2020.
Adjusted profits fell 20 per cent to 28 cents per share from 35 cents per share in the prior year quarter.
Revenues for the three months ended June 30 were $1.16 billion, up from $1.09 billion the 2020 quarter.
Meat protein sales increased 7.4 per cent to $1.12 billion while plant protein sales declined 21 per cent to $48.1 million after experiencing a surge in demand a year ago due to COVID-19.
Analysts on average expected Maple Leaf would report 25 cents per share in adjusted earnings on $1.15 billion of revenues, according to financial data firm Refinitiv.
“As we anticipated, our second quarter faced material market headwinds and a difficult year-over-year comparable quarter due to COVID-19 effects, and yet our business delivered excellent results” stated CEO Michael McCain.