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

Maple Leaf Foods Reports on Q3 of FY 2021

11/05/2021

In a press release dated November 4th Maple Leaf Foods Inc. (MFI-TO) announced results for the 3rd Quarter ended 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 US$ x 1,000 except EPS (conversion of CAN$1=US$0.80)

 

 

 

 

3rd Quarter Ending September 30th.

2021

2020

Difference (%)

Sales:

$950,914

$845,735

+12.4

Gross profit:

$150,526

$182,491

-17.5

Operating income:

$54,316

$80,759

-32.7

Pre-tax Income

Net Income1

$49,870

$35,583

$72,292

$52,781

-31.0

-32.6

Diluted earnings per share:

$0.28

$0.42

-33.3

Gross Margin (%)

15.8

21.5

-26.5

Operating Margin (%)

5.7

9.5

-40.0

Profit Margin (%)

3.7

6.2

-40.3

Long-term Debt:

$1,045,769

$735,375

+42.2

12 Months Trailing:

 

 

 

           Return on Assets    (%)

4.6

 

 

           Return on Equity    (%)

7.6

 

 

           Operating Margin   (%)

6.7

 

 

           Profit Margin          (%)

3.4

 

 

Total Assets

Intangibles and goodwill % of assets

$3,453,265

23.8

$3,019,365

26.8

+14.4

Market Capitalization

$3,040,000

 

 

 

Note 1. $0.772 million non-recurring income Q3 2021; $1.102 million non-recurring expenditure Q3 2020.

 

Meat Protein Segment:

Sales, $920.2 million, up 13.1% from Q3 2020.

Adjusted earnings $84.5 million up 32.0% from Q3 2020.

 

Plant Protein Segment:

Sales, $38.4 million, down 6.5% from Q3 2020.

Adjusted earnings $(30.1) million 12.8% improvement from Q3 2020.

 

 

52-Week Range in Share Price:  $18.85  to  $24.74   50-day Moving average  $21.53

Forward P/E 17.3      Beta  0.3

Market            Close pre-release November 3rd $21.97.  

Market            Close post-release November 4th  $24.50 (+11.6%). 

 

Insider shareholding 39.3%. Institutional shareholding 24.6%

 

In commenting on Q3 results Michael H. McCain, president and CEO of Maple Leaf Foods stated "Our meat protein business delivered exceptional results in the third quarter. Our revenue grew by over 13% and our Adjusted EBITDA grew by 22%, driven by a 90 bps improvement in margin to 13.0%, the result of outstanding execution of our strategies to become the most sustainable protein company on earth. I am grateful for the tireless commitment of our teams who are consistently delivering, and confident in achieving our near-term targets.

 

In relation to alternatives to meat McCain noted "We are seeing a marked slowdown in the plant-based protein category performance which may suggest systemic change in the extremely high growth rates expected by the industry."  He continued "While our overall focus to create long-term value for all stakeholders remains unchanged, and investments to date have been well calculated, well executed and have delivered underlying value, we have always been prepared to re-examine that investment thesis if circumstances change. He concluded “Given current category performance, such a review is underway which will either affirm or adjust our strategies and investment thesis going forward."


 
Copyright © 2022 Simon M. Shane