That compares with a year earlier loss of $7.5 million or $ .05 per share, which marked the beginning of a bottom-line recovery for one of Canada's largest food companies.
A major reason for the improvement in this year's second quarter net income was higher operational earnings from the company's meat products group, which rose to $62.9 million from $17.7 million last year.
Sales in Maple Leaf`s meat products group in the second quarter increased 4.1% to $851.0 million. Prepared meats sales declined slightly, as the benefit of price increases implemented during the first quarter, to mitigate inflationary and currency impacts, was more than offset by a short-term volume decline in response to the price increase and the exit of some lower margin business. Sales in fresh pork increased as the company's focus on increasing its value-added pork business resulted in improved selling prices and volume. Performance was also supported by favourable exchange rates. Fresh poultry sales increased due to stronger volume and an increased higher value sales mix.
Higher earnings in prepared meats resulted from lower operating costs, an improved sales mix, and pricing implemented in the first quarter, partially offset by lower volume. Maple Leaf made continued progress in increasing operating efficiencies across its new prepared meats plant network, primarily at its largest facility in Hamilton. Higher fresh pork earnings resulted from increased contributions from value-added Canadian retail and value-added export sales, higher industry margins, and operating efficiency gains. Earnings in fresh poultry increased due to higher branded sales volume and operating efficiency gains.
Source: Meatbusiness