Maple Leaf Foods Inc. reported its financial results for the third quarter, ending September 30, 2016. Third quarter net earnings grew 70%, adjusted earnings per share doubled compared to the same quarter of last year. Adjusted EBITDA margin was 10.3% in the quarter and contributed to free cash flow of approximately $147 million.
"Our results in the quarter and for the year-to-date demonstrate the consistent performance we expected from our many years of strategic transformation," said Michael H. McCain, President and CEO. "We are now focused on the next horizon for Maple Leaf, supported by the pillars of our strategy including leading in sustainability, driving innovation and growth, consistently reducing our costs and expanding our geographic footprint. These are exciting times at Maple Leaf."
Sales in the third quarter increased 4.1% to $848.1 million, or 2.8% after adjusting for the impact of foreign exchange. Sales in fresh pork increased as the company's focus on increasing its value-added pork business resulted in improved selling prices and increased volumes. Fresh poultry sales also increased due to stronger volume and an improved sales mix.
Sales in the first nine months increased 3.5% to $2,492.1 million, or 1.7% after adjusting for the impact of foreign exchange. The increase was due to similar factors noted above.
Adjusted Operating Earnings in the third quarter increased to $65.9 million compared to $28.3 million last year. Higher earnings in prepared meats resulted from lower operating costs across the network and pricing implemented in the first quarter. Higher fresh pork earnings resulted from increased contributions from value-added Canadian retail and value-added export sales, higher industry margins, and operating efficiency gains.
Source: Maple Leaf Foods