Maple Leaf Q2 results fall short of expectations

CEO cites labour issues and rising costs as reasons
calendar icon 12 August 2022
clock icon 1 minute read

Canadian pork and poultry processor Maple Leaf Foods announced its financial results for the second quarter ended 30 June 2022.

“This chaotic and unpredictable operating environment is unprecedented in my 40-year career in the food industry,” said Michael H. McCain, president and CEO of Maple Leaf Foods. “Driven by a post-pandemic economy and the tragic conflict in Eastern Europe, we have been unable to hire adequate people resources to operate our supply chains, experienced unnatural agricultural and trading markets, and realised hyper-inflation that has been challenging to keep up with pricing."

Q2 results fell short of expectations with an adjusted EBITDA margin of 9% in the Meat Protein Group.

"Our commitment to achieve 14-16% Adjusted EBITDA was grounded in the assumption of normal, five-year average market conditions and we are confident we will deliver that once the environment stabilises, although predicting this timeline at the moment is challenging," said McCain. "Our focus on executing our Blueprint to be the most sustainable protein company on earth is absolute.”

Maple Leaf is transitioning its plant protein business to a different business model. The size of the organisation was reduced at the end of Q2. Revenue management adjustments will also occur over the course of the next 12 months. McCain believes this will transition the company back to one of profitable growths.

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