Thursday, August 4, 2022

Maple Leaf profits plunge

Maple Leaf Foods Inc. reports a $54.4-million loss for its second quarter, despite a 3.1 per cent increase in sales to $1.195 billion.

The company is reducing its plant proteins business, a process that will continue well into next year. It expects the plant protein market will expand by 10 to 15 per cent.

President and chief executive officer Michael McCain said “this chaotic and unpredictable operating environment is unprecedented in my 40-year career in the food industry. 

“Driven by a post-pandemic economy and the tragic conflict in Eastern Europe, we have been unable to hire adequate people resources to operate our supply chains, experienced unnatural agricultural and trading markets, and realized hyper-inflation that has been challenging to keep up with pricing. 

“While our results fell short of expectations  . . . we see signs of these conditions abating,”he said.

Meat Protein Group sales grew to $1,160.2 million, an increase of 3.8 per cent, but the plant protein business took a $18.6-million restructuring charge. It lost $10 million on sales of $40 million.