Maple Leaf Foods’ Q4 profit jumps to $76.2M
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.