Maple Leaf Foods Inc. lost $9.8 million on hog production in
the fiscal year just ended, mainly because hog prices declined and were not
fully covered by the company’s risk management strategies.
That compares with a loss of $6.9 million the previous year.
Maple Leaf became a major hog producer when its supply of
market hogs for its Brandon, Man., slaughter plant was threatened by the bankruptcy
of suppliers.
It took over significant production volume, including
Puratone in Manitoba.
Despite tough times in its agribusiness sector, Maple Leaf
substantially boosted fourth-quarter profits to $76.2 million from $33.3
million last year and annual profits to $181.7 million from $41.6 million last
year.
Fourth-quarter revenues increased by two per cent to $328
million.
President and CEO Michael McCain said the company has made
progress in trimming costs and aligning its products with consumer preferences.
The company also announced a new agreement with McCain
Capital Corp., which is controlled by the McCain family and is the company’s
biggest shareholder.
A majority of directors will be outsiders and will be picked
by the board, McCain Capital is restricted to owning less than 45 per cent of
the shares unless it makes a bid to buy them all and any individual within
McCain Capital is restricted to 20 per cent of shares, again unless that person
makes a bid to buy them all.
