Maple Leaf Foods’ Q4 profit jumps to $76.2M

The Hamilton Spectator - - BUSINESS - THE CANA­DIAN PRESS

Maple Leaf Foods says its net in­come more than dou­bled in the fourth quar­ter and that it will al­low its largest share­holder to hold a larger stake in the com­pany.

The Toronto-area food pro­cess­ing com­pany said Wed­nes­day that fourth-quar­ter net in­come was $76.2 mil­lion, or 57 cents per share, up from 24 cents per share or $33.3 mil­lion in the same quar­ter of 2015.

Sales were $828.2 mil­lion, down 5.1 per cent from $873.1 mil­lion in the fourth quar­ter of 2015. How­ever, the com­pany noted that 2015 had an ex­tra week and sales were up 2.0 per cent year-over-year when it’s ex­cluded.

Part of the year-over-year in­crease in profit was due to a higher fair value of some of its as­sets and com­mod­ity con­tracts.

Maple Leaf also an­nounced a re­vised gov­er­nance agree­ment with McCain Cap­i­tal, which in­cludes Maple Leaf chief ex­ec­u­tive Michael McCain, al­low­ing its largest share­holder to in­crease its stake to 45 per cent of the com­pany. A 2011 agree­ment had lim­ited the group’s own­er­ship to 31.9 per cent.

Maple Leaf an­nounced Tues­day that it will ac­quire an Amer­i­can com­pany that makes plant-based pro­tein foods for $140 mil­lion US and any re­lated costs.

Lightlife Foods Inc. of Turners Falls, Mass., makes veg­e­tar­ian deli meats and other meat­less foods.

The deal is sub­ject to a U.S. reg­u­la­tory re­view and is ex­pected to close in March.

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