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”.