Maple Leaf Q1 Financial Results Reveal Some Interesting Points

© Maple Leaf Foods

Packaged meat company Maple Leaf Foods published its first quarter results with some highly interesting points. There was substantial growth in its plant protein sector. Maple Leaf created a plantbased arm, Greenleaf, in October 2018. Greenleaf encompasses plant meat brands Lightlife Foods and Field Roast.

Key points include the following:

  • Meat Protein Group sales growth of 12.7% driven primarily by strong retail volumes, higher sales to Asian markets and a favourable shift towards “sustainable meats”
  • Plant Protein Group sales growth of 25.9%, consistent with expectations, with selling, general and administrative expenses (“SG&A”) of $30.9 million
  • The company expects higher pork demand from Asia in the second quarter, while reporting a 12.8% jump in first-quarter sales due to consumers stockpiling food during the coronavirus pandemic.
  • A rise in sales in Q1 was seen as consumers stockpiled products such as meat.
  • Maple Leaf Foods Inc. says that costs from COVID-19 will account for $20 million in Q2
  • The company’s reported a loss because of higher costs associated with strategic investments in plant protein and depressed market prices for “livestock”.