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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Maple Leaf Foods Reports on Q3 2019

10/30/2019

In a press release dated October 30th Maple Leaf Foods (MFI Toronto) announced results for the 3rd Quarter of Fiscal 2019 ending September 30th.

The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as $ x 1,000 except EPS Conversion Can$1= US$0.76)

3rd Quarter Ending September 30th

2019

2018

Difference (%)

Sales:

$756,798

$664,864

+13.8

Gross profit:

$106,185

$90,122

+17.8

Operating income: Note1

$12,211

$31,316

-61.1

Pre-tax Income Note 2

Net Income Note 3

$1,374

$10,191

$27,044

$20,183

Neg

-49.5

Diluted earnings per share:

$0.08

$0.16

-50.0

Gross Margin (%)

14.0

13.5

+3.7

Operating Margin (%)

1.6

4.7

-65.9

Profit Margin (%)

1.4

3.0

-53.3

Long-term Debt:

$517,805

$134,808

+284.1

12 Months Trailing:

     

Return on Assets (%)

4.0

   

Return on Equity (%)

4.1

   

Operating Margin (%)

5.4

   

Profit Margin (%)

2.1

   

Total Assets

$2,603,705

$2,128,279

+12.3

Market Capitalization

$3,100,000

   

Note 1. SGA attained $94.0 million in Q3 FY 2019 compared to $58.8 million in Q3 FY 2018.

Note 2. Interest attained $6.2 million in Q3 FY 2019 compared to $1.8 million in Q3 FY 2018

Note 3. Includes 8.8 million tax benefit

52-Week Range in Share Price: $24.78 to $ 35.82. 50-day moving average $30.00

Market Close Oct. 29th pre-release $29.02

Close Oct. 30th post release $25.03 (down 13.7 percent)

Forward P/E 17.6


In reviewing Q3 results Michael H. McCain, president and CEO stated"our third quarter marks our first on the journey to operating two significant segments with different economics: one in meat protein with a robust multi-year agenda of profit growth, and one in plant protein that is capitalizing on enormous opportunities for rapid revenue growth", He elaborated "our plant protein business saw 30 percent growth and is accelerating, and we are intentionally investing very heavily in that growth. Meat protein faced an unexpectedly erratic market condition in the quarter connected with global trade, and we expect that to reverse in short order. We are very excited about how we are positioned and where we are headed!"

The alternative protein business recorded an operating loss of $26.5 million on sales of $35.7 million in Q3 FY 2018. The comparative values for Q3 FY 2018 were a profit of $0.3 million on sales of $27.5 million. Gross margin for Q3 2019 was 21.3 percent compared to 25.1 percent in the corresponding quarter of FY 2018


 
Copyright 2019 Simon M. Shane