Kenneth Zaslow of BMO World Markets is not impressed by the performance of Maple Leaf Foods Inc.
He says the recent announcement of second-quarter financial results indicates the company isn’t doing as well as anticipated.
He listed several challenges – high costs to commission three plant expansions; higher raw material costs, particularly pork bellies; a weak Japanese yen; increased hog production losses, and lower earnings in rendering because of a cost-price squeeze of higher costs for raw material and lower prices for biodiesel.
However, sales volumes increased during the second quarter.
But the company made no profit in the second quarter compared with $26 million in the same quarter last year.