Maple Leaf Foods reports $26.2M Q2 loss as company prepares to spin off pork business | Canada News Media
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Maple Leaf Foods reports $26.2M Q2 loss as company prepares to spin off pork business

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Maple Leaf Foods Inc. reported a loss of $26.2 million in its latest quarter compared with a loss of $53.7 million a year earlier as it prepares to spin off its pork business.

The Mississauga, Ont.-based meat producer and processor’s president and CEO Curtis Frank told analysts on a call Thursday that investor reaction to the plan to hive off the pork business into a new, publicly traded company next year has been positive.

“We remain confident that this is a move that will lead to greater levels of growth and value creation as each business is provided the opportunity to pursue its own strategies with a dedicated management team that’s focused on executing its unique playbook,” he said.

Maple Leaf previously said the split will make it a more focused and brand-led consumer packaged goods company. Its portfolio will include the prepared meats business, which houses brands like Maple Leaf and Schneiders; and its poultry and plant protein operations.

Existing Maple Leaf shareholders will receive shares in the new company, while Maple Leaf will retain a 19.9 per cent ownership position.

The two companies will also enter into an evergreen pork supply agreement, with the new business providing Maple Leaf with a secure supply of pork for its prepared foods division.

The new pork company will be led by Dennis Organ, who joined Maple Leaf Foods in February 2023 as president, pork complex.

The primary objectives as the spin-off approaches are to reduce costs related to raising hogs and processing, Organ told analysts, as well as to advance automation projects.

“Thankfully, feed markets have begun to normalize to pre-2020 levels, and this improvement is reflected in our results,” he said.

Maple Leaf said its loss amounted to 21 cents per diluted share for the quarter ended June 30 compared with a loss of 44 cents per diluted share for the same quarter last year.

Frank attributed the quarter’s performance to sales growth in prepared meats, better pork market conditions, growth in the company’s sustainable meats portfolio, a better overall sales mix, and contributions from large capital projects.

Capital expenditures in the quarter were $16 million, down from $53 million a year earlier, reflecting the completion of large capital projects.

The company expects that as the year progresses, it will continue to see returns from investments into its London, Ont., poultry plant and the Bacon Centre of Excellence in Winnipeg.

Sales in the quarter totalled $1.26 billion, down from $1.27 billion a year earlier.

Sales for Maple Leaf’s prepared foods business rose about one per cent, while sales for its pork business fell 4.2 per cent compared with last year.

On an adjusted basis, Maple Leaf says it earned 18 cents per share in its latest quarter compared with a break even result on an adjusted per share basis a year ago.

Frank said while the company continues to see positive momentum, it’s also mindful of the current consumer environment.

“Like many other companies, we are seeing softness in consumer demand for premium offerings … largely attributable to the overall economic environment.”

Maple Leaf said that for the full 2024 year, it expects low single-digit revenue growth. It also expects its adjusted margin will expand compared with 2023 thanks to several factors including the return on its large capital investments as well as operational and cost efficiencies.

Shares in Maple Leaf were trading almost eight per cent lower on the Toronto Stock Exchange in the early afternoon at $23.44.

This report by The Canadian Press was first published Aug. 8, 2024.

Companies in this story: (TSX:MFI)

Note to readers: This is a corrected story. An earlier version incorrectly stated the change in prepared food sales.

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Jade Eagleson wins album of the year at Canadian Country Music Association awards

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EDMONTON – Ontario country artist Jade Eagleson has won album of the year at the 2024 Canadian Country Music Association Awards in Edmonton.

The singer from Bailieboro, Ont., was up for six awards alongside Alberta’s MacKenzie Porter.

Eagleson took home album of the year for “Do It Anyway” and says he’s thankful to his wife and management team for helping him reach the level he’s at.

The James Barker Band from Woodville, Ont., also won fans’ choice and group of the year at the award show, held in Edmonton.

During their acceptance speech, frontman Barker hinted at new music and a possible tour in 2025.

Another Ontario crooner, Josh Ross, has taken home a trio of awards, receiving entertainer of the year, male artist of the year and single of the year.

He says he and his band play roughly 150 shows every year and are never home, but says taking home entertainer of the year makes the hard work worth it.

Porter took home female artist of the year, ending the five-year streak of Tenille Townes being awarded the coveted hardware.

Porter had been nominated seven times previously for the award in the past decade but hadn’t won until tonight.

The artist from Medicine Hat, Alta., says it takes a lot of hard work and hustle to succeed as a female in the country music industry and gave a shout out to her fellow singers and her newborn daughter.

Joining the two artists in the winners’ circle was Ontario singer-songwriter Owen Riegling, who won for breakthrough artist of the year.

The show began with American artist and co-host Thomas Rhett being dubbed an honorary Canadian by Edmonton Oilers players Corey Perry and Leon Draisaitl.

Rhett donned an Oilers jersey that was gifted to him by the pair.

The return of k.d. lang and the Reclines was expected to be a highlight of the show.

The appearance will mark the first time the Alberta songstress has teamed up with the band in 35 years and is tied to lang’s induction into the Canadian Country Music Hall of Fame.

The awards show is back in Alberta’s capital for the first time since 2014. It was held in Hamilton last year and in Calgary in 2022.

This report by The Canadian Press was first published Sept. 14, 2024.

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B.C. Conservatives promise to end stumpage fees, review fire management if elected

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VANDERHOOF, B.C. – British Columbia Conservatives are promising changes they say will bring more stability to the province’s struggling forest industry.

Leader John Rustad announced his plan for the sector a week before the official launch of the provincial election campaign, saying a Conservative government would do away with stumpage fees paid when timber is harvested and instead put a tax on the final products that are produced.

Rustad said Saturday that under a provincial Conservative government, a small fee may be charged upfront, but the bulk would come at the end of the process, depending on what type of product is created.

He also promised to review how wildfires are managed, as well as streamline the permit process and review what he calls the province’s “uncompetitive cost structure.”

“British Columbia is by far the highest cost producers of any jurisdiction in North America. We need to be able to drive down those costs, so that our forest sector can actually be able to do the reinvestment, to be able to create the jobs and make sure that they’re still there to be able to support our communities,” he said.

The governing New Democrats meanwhile, say eliminating stumpage fees would inflame the softwood lumber dispute with the United States and hurt forestry workers.

In a statement issued by the NDP, Andrew Mercier, the party’s candidate in Langley-Willowbrook, said Rustad failed to support the industry when he was in government under the former BC Liberals.

“Not only will Rustad’s old thinking and recycled ideas fail to deliver, his proposal to eliminate stumpage would inflame the softwood lumber dispute — punishing forestry workers and communities,” Mercier said, accusing Rustad of ignoring the complexity of the challenges facing the industry.

The softwood lumber dispute between the U.S. and Canada stretches back decades. In August, the U.S. Department of Commerce nearly doubled duties on softwood lumber.

International Trade Minister Mary Ng has said Canada has taken steps to launch two legal challenges under the Canada-United States-Mexico Agreement.

Rustad said a provincial Conservative government would push hard to get a deal with the United States over the ongoing dispute “whether it’s with the rest of Canada or by itself.”

He said his party’s proposed changes are in the name of bringing “stability” and “hope” to the industry that has seen multiple closures of mills in rural communities over the last several years.

Most recently, Canfor Corp. decided to shutter two northern British Columbia sawmills earlier this month, leaving hundreds of workers unemployed by the end of the year.

According to the United Steelworkers union, Canfor has closed 10 mills in the province since November 2011, including nine in northern B.C.

Jeff Bromley, chair of the United Steelworkers wood council, said Saturday the idea of changes in favour of taxing the final product has been floated in the past.

He said the finer details of the Conservative plan will be important, but that the system needs to be improved and “new ideas are certainly something I’d be willing to entertain.”

“Something needs to happen, or the industry is just going to bleed and wither away and be a shadow of its former self,” Bromley said.

“Politics aside, if (Rustad) can come up with a policy that enables my members to work, then I would be supportive of that. But then I’m supportive of any government that would come up with policies and fibre for our mills to run. Period.”

When Canfor announced its latest closures, Forests Minister Bruce Ralston said the sector was a “foundational part” of the province and the current NDP government would work to support both local jobs and wood manufacturing operations.

This report by The Canadian Press was first published Sept. 14, 2024

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Christian McCaffrey is placed on injured reserve for the 49ers and will miss at least 4 more games

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SANTA CLARA, Calif. (AP) — The San Francisco 49ers placed All-Pro running back Christian McCaffrey on injured reserve because of his lingering calf and Achilles tendon injuries.

The move made Saturday means McCaffrey will miss at least four more games after already sitting out the season opener. He is eligible to return for a Thursday night game in Seattle on Oct. 10.

McCaffrey got hurt early in training camp and missed four weeks of practice before returning to the field on a limited basis last week. He was a late scratch for the opener on Monday night against the Jets and now is sidelined again after experiencing pain following practice on Thursday.

McCaffrey led the NFL last season with 2,023 yards from scrimmage and was tied for the league lead with 21 touchdowns, winning AP Offensive Player of the Year.

The Niners made up for McCaffrey’s absence thanks to a strong performance from backup Jordan Mason, who had 28 carries for 147 yards and a touchdown in San Francisco’s 32-19 victory over the New York Jets. Mason is set to start again Sunday at Minnesota.

After missing 23 games because of injuries in his final two full seasons with Carolina, McCaffrey had been healthy the past two seasons.

He missed only one game combined in 2022-23 — a meaningless Week 18 game last season for San Francisco when he had a sore calf. His 798 combined touches from scrimmage in the regular season and playoffs were the third most for any player in a two-year span in the past 10 years.

Now San Francisco will likely rely heavily on Mason, a former undrafted free agent out of Georgia Tech who had 83 carries his first two seasons. He had at least 10 touches just twice before the season opener, when his 28 carries were the most by a 49ers player in a regular-season game since Frank Gore had 31 against Seattle on Oct. 30, 2011.

The Niners also have fourth-round rookie Isaac Guerendo and Patrick Taylor Jr. on the active roster. Guerendo played three offensive snaps with no touches in the opener. Taylor had 65 carries for Green Bay from 2021-23.

San Francisco also elevated safety Tracy Walker III from the practice squad for Sunday’s game against Minnesota.

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