Maple Leaf Foods enjoys 19% profits surge in second quarter
Maple Leaf Foods increased its profits by 19% in the second quarter, falling narrowly short of reaching $1bn worth of sales.
An 8.3% increase in sales saw it rake in $925.9mn compared to the $854.6mn it earned in the same period in 2016.
Strong pork sales were the main factor behind the impressive numbers as market conditions favoured the packaged meat industry.
“We delivered excellent second quarter results with continued earnings growth," said Michael H. McCain, President and CEO.
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“Moving forward, we are focused on accelerating profitable growth, investing in our brands and building our leadership in sustainability.”
The rising cost of raw materials is representing a challenge for the business going forward, however, with a margin compression in prepared meats.
It is expected that Maple Leaf will have to raise prices in the third and fourth quarters to offset the narrowing of these margins.
The company, founded in 1991, is headquartered in Mississauga, Ontario and employs approximately 11,500 workers across Canada, the United States and Asia, producing recognisable brands such as Swift, Larsen and Shopsy’s.