Share via Email


* Email To: (Separate multiple addresses with a semicolon)
* Your Name:
* Email From: (Your IP Address is 44.192.25.113)
* Email Subject: (personalize your subject)


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

Maple Leaf Foods Reports on Q1 of FY 2021

05/05/2022

Chick-NewsIn a press release dated March 4th Maple Leaf Foods Inc. (MFI-TO) announced results for the 1st Quarter of FY 2022 ended March 31st.

 

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$0.78)

 

1st Quarter Ending March 31st.

2022

2021

Difference (%)

Sales:

$878,711

$821,405

+7.0

Gross profit:

$120,013

$150,504

-20.3

Operating income:

$26,837

$60,118

-55.4

Pre-tax Income

Net Income1

$16,417

$10,676

$51,399

$37,200

-68.1

-71.3

Diluted earnings per share:

$0.09

$0.30

-70.0

Gross Margin (%)

13.7

18.3

-25.1

Operating Margin (%)

3.1

7.3

-57.5

Profit Margin (%)

1.2

4.5

-73.3

Long-term Debt and lease obligations*:

$1,169,676

$876,359

+33.5

12 Months Trailing:

     

Return on Assets (%)

2.7

   

Return on Equity (%)

5.2

   

Operating Margin (%)

3.9

   

Profit Margin (%)

2.3

   

Total Assets*

 Intangibles and goodwill % of assets

$3,551,940

22.3

$3,246,692

22.9

+13.6

Market Capitalization

$2,730,000

   

* March 31st 2022/2021

 

Chick-NewsQ1 2022 Meat Protein Segment:

Sales, $849 million, up 7.5% from Q1 2021.

Adjusted operating earnings $39.8 million down 35.9% from Q1 2021.

 

Q1 2022 Plant Protein Segment:

Sales, $35.0 million, up 5.3% from Q1 2021.

Adjusted operating loss $(27.2) million 36% improvement from Q1 2021.

 

52-Week Range in Share Price: $18.95 to $25.43 50-day Moving average $22.53

Forward P/E 20.3 Beta 0.4

Market Close pre-release May 3rd $21.36

Market Close post-release May 4th $21.76

 

Insider shareholding 39.2%. Institutional shareholding 25.3%

 

Chick-NewsIn commenting on Q3 results Michael H. McCain, president and CEO of Maple Leaf Foods stated, “Our team’s perseverance and resiliency during the past two years has been nothing short of remarkable,” He added “As fully expected, intense Omicron impacts, including high levels of absenteeism, inflation and supply chain disruptions, challenged us operationally, yet we achieved exceptional business performance in these extreme conditions. Revenue grew 7% and we remain on target to achieve our goal of 14 to 16 percent adjusted EBITDA margin in Meat Protein this year.”

 

With respect to the Plant Protein Segment McCain commented, “ We showed a modest 5 percent growth rate and are continuing our methodical work to adjust the business investment model to match our new outlook for long-term category growth. We will rightsize our manufacturing footprint and SG&A structure to deliver our goal of breakeven adjusted EBITDA or better in the latter half of 2023,” said Mr. McCain.

 

The Company provided the following guidance:-

 

“Meat Protein: Expect mid-to-high single digit sales growth with Adjusted EBITDA Margin expansion near the lower end of the 14% to 16% target by the end of 2022”.

“Plant Protein: Targeting to deliver neutral or better Adjusted EBITDA in the latter half of 2023”.

The Company announced that it is moving forward with a planned leadership transition plan for the Board and Management. Michael McCain will serve as the Executive Chair of the Board and will continue as CEO for the next year as part of the management transition plan. Curtis Frank, currently the President and COO, will assume the role of CEO during Q2 of 2023.


 
Copyright © 2022 Simon M. Shane