Maple Leaf Foods Reports Q2 Profits

Jul 29, 2016

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

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.