Maple Leaf Foods announce 3rd quarter results 2007

The company’s meat and bakery businesses are facing challenges through increased wheat, corn and other input costs while battling with a rising Canadian dollar.

Divesture
It reported significant gains from the sale of its animal nutrition business to Nutreco Holding BV amounting to an after-tax gain of CAD$525m (US$549m) in the third quarter of this year.

Proceeds from the sale were used to reduce long-term debt, thus strengthening the balance sheet for future acquisitions.

Meat Products Group
By exiting certain international markets, sales declined 7% to CAD$863m(US$902m) in the third quarter.

Maple Leaf’s new protein strategy aims to reduce the volume of pork processed and to consolidate all fresh pork processing at its facility in Brandon. Preparations are already underway at the Brandon plant with the introduction of a second shift in September and an increase in the number of hogs processed to 13,000 daily.

Agribusiness Group
Sales in agribusiness (swine production and animal by-products recycling) were consistent with last year at CAD$53m (US$55m).

The company currently owns 19% of the hogs it processed in the last quarter. As part of the protein reorganisation, sows under management should reduce to 35,000 from 120,000.

The company’s other main activity – bakery products – has witnessed a major increase in sales through significant acquisitions in the UK.

Related website:

• Maple Leaf Foods

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