Maple Leaf Foods reported its financial results for the first quarter ending March 31, 2018.
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Sales in the first quarter increased 0.8% to $817.5 million, or 2.4% after adjusting for the adoption of a new accounting standard, foreign exchange, and acquisitions.
Sales were driven by prepared meats, which benefited from innovation and the Company's expansion in the U.S. market as well as pricing taken in fall of 2017.
The Lightlife and Field Roast brands contributed to sales increases in the quarter. Sales in value-added fresh pork were impacted by lower market values and a transitory reduction in hog supply from PEDv in 2017.
Adjusted Operating Earnings were $52.8 million compared to $59.0 million in the first quarter of 2017.
Positive trends and commercial performance in the underlying business were offset by market conditions in pork markets which were materially below prior year.
First quarter earnings benefited from improvement in prepared meats related to volume growth, strong margins and increased supply chain efficiency. Performance in value-added poultry and pork and plant protein also contributed to our earnings.
Net earnings for the first quarter were $27.9 million ($0.22 per basic share) compared to $30.1 million ($0.23 per basic share) in the first quarter of 2017.The decrease in net earnings was consistent with factors noted above and partially offset by lower restructuring costs.
On May 2, 2018, the Board of Directors approved a dividend of $0.13 per share payable June 29, 2018 to shareholders of record at the close of business on June 8, 2018.
Unless indicated otherwise by the company at or before the time the dividend is paid, this dividend will be considered an eligible dividend for the purposes of the "Enhanced Dividend Tax Credit System". ■
A joint venture comprised of DeRoyal Industries, Premier and 34 Premier member health systems will establish a healthcare products manufacturing facility in Powell, Tennessee.