Maple Leaf Foods Narrows Loss in Q3
Maple Leaf Foods managed to reduce its loss in the third quarter, but its revenue growth fell short of expectations due to underperformance in its plant protein division.
The Canadian consumer-packaged meats company reported a net loss of 4.3 million Canadian dollars ($3.1 million), or C$0.04 a share, compared to a larger loss of C$229.5 million, or C$1.86 a share, in the same quarter last year.
To offset higher costs, Maple Leaf Foods has been cutting down its selling, general, and administrative expenses, including reducing interest expenses on its debt.
Adjusting for certain items, the company recorded a profit of C$0.13 per share, a turnaround from a loss of C$0.01 per share. However, analysts were expecting profits to reach C$0.21 per share.
While sales increased from C$1.23 billion to C$1.25 billion, they fell short of analyst expectations of C$1.31 billion.
In terms of revenue breakdown, Maple Leaf Foods' meat protein group, its largest segment, experienced a 1.1% increase to reach C$1.21 billion. On the other hand, the plant protein group saw a decline in revenue from C$43.6 million to C$36.4 million compared to the previous year.
Maple Leaf Foods remains focused on addressing the challenges faced by its plant protein unit and optimizing its overall financial performance.
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