After years of major changes and
losses, Maple Leaf Foods appears to be on solid ground and turning profits.
Disclosure: I own some Maple Leaf shares.
Its first-quarter report features net
earnings of $42.3 million compared with a loss of $2.5 million a year ago. It’s
the second quarter of much-improved earnings.
President and chief executive officer
Michael McCain says "the first quarter was a milestone for Maple Leaf, as
we delivered on our financial target and commitment to shareholders that we
would build a sustainably more profitable company.
"Our company and board took the
longer-term view of value creation.”
The company sold its Canada Bread
division, its Shur Gain and Landmark feed businesses, its hog-packing plants,
including the one in Burlington, its Rothsay Concentrates rendering business,
its turkey farms, quota and processing plant, its chicken-processing plant in
Cambridge and closed almost all of its meat-processing plants, including the
huge Schneider Corp. plant in Kitchener.
It built a huge meat-processing plant
in Hamilton and a distribution centre near Highway 401 south of Guelph.
McCain said “today I am proud that
our transformation, one of the largest in the North American food industry, is
delivering the financial goals that we set back in 2010.
“This reflects the perseverance of
many thousands of people, who with single-minded purpose executed a complex and
far reaching strategy. Our accomplishment is a tribute to them."
Maple Leaf was galvanized into
delivery of its plans when an activist shareholder took a huge stake in the
company and demanded representation on the board of directors. After a few
months, the investor agreed with McCain’s plan.
"Maple Leaf Foods bears little
resemblance to the company we were in 2010,' says McCain.
“It is stronger. It is globally
competitive. It is at the leading edge of innovation. It is building a
sustainable future. And we are committed to making the next chapter as
rewarding as the last."
