Maple Leaf Foods reports $40.8M Q2 profit, sales up from year ago

Maple Leaf Foods reported a $40.8 million profit for the second quarter, with sales up 1.6% from the previous year. The company attributed some of the lower demand for its products to price hikes aimed at offsetting rising raw material costs. CEO Curtis Frank explained that lower sales volumes in the prepared foods category were expected, as price increases are common in consumer packaged goods.

Maple Leaf's prepared foods sales, which account for about 60% of revenue, fell by 2% in the quarter. Profit, however, amounted to 33 cents per share, down from $57.8 million a year ago. The company's bet on protein snacks proved beneficial, with sales of protein snacks and protein snack kits driving growth in that category. Maple Leaf has partnered with 1,500 gas stations and convenience stores to distribute its protein offerings.

The company also saw a 7.1% increase in poultry sales, driven by higher volumes and better pricing. Adjusted earnings per share reached 44 cents, up from 33 cents per share in the same period last year.