Maple Leaf Foods Second-Quarter Plant Protein Sales Fell 15% -- Commodity Comment


By Mary de Wet, Dow Jones Newswires

via MarketWatch - Aug. 4, 2022


Maple Leaf Foods Inc. said its plant protein sales fell 15% in the second quarter, while its meat protein sales rose 3.8%. Both groups saw lower sales volumes.


On the second quarter:


Meat protein sales rose to 1.16 billion Canadian dollars (US$900 million) from C$1.12 billion in the year-ago period.


"Sales growth was driven by pricing action to mitigate inflation and a favorable mix-shift in product sales, including growth in sustainable meats and branded products, partially offset by lower sales volume," the Mississauga, Ontario, protein company said.


Plant protein sales fell to C$40.8 million from C$48.1 million a year ago. "Excluding the impact of foreign exchange, sales decreased 18.4%, driven by lower volumes in retail products. This more than offset pricing action implemented to mitigate inflation and structural cost increases, and growth in foodservice volumes," Maple Leaf Foods said.


On its outlook:


Maple Leaf Foods expects mid-to-high single-digit sales growth for its meat protein business in 2022, driven by sustainable meats and growth into the U.S. market. The company's meat protein brands include Maple Leaf, Schneiders and Greenfield Natural Meat Co.


"In our Plant Protein business, we are in full motion executing our transition to a different business model," said President and Chief Executive Officer Michael H. McCain. "At the end of 2Q, we took steps to materially reduce the size of the organization. We expect to achieve our SG&A targets by the end of this year, and a right-sizing of the manufacturing footprint in the first half of 2023, giving us the back half of 2023 as time to make final adjustments."


Maple Leaf Foods said in late 2021 that it was re-evaluating the outlook for its plant protein business...