Modest sales improvement in bakery for Maple Foods
Its overall sales were down 2% on the same quarter last year, but after accounting for divestitures and a stronger Canadian dollar, sales were seen to increase by 6%, taking total sales to CAD $1,2bn (€904m).
The company’s adjusted operating earnings were up from CAD $62.7m (€44.9m) last year to CAD $73.3m (€52.5m) this year.
In bakery, Q3 sales increased $6m (€4.3m) on last year which the company said was primarily a result of price increases introduced earlier in 2011 and strong performance for bagels in the UK following the re-launch of the firm’s New York Bakery brand.
“The Company experienced some margin compression as price increases implemented earlier in the year were not sufficient to fully offset the impact of the continued rise of raw material costs,” Maple Leaf said in its financial release.
“Lower costs resulting from improved operating efficiencies in the Company's frozen bakery business and lower selling, general and administrative expenses contributed to earnings,” it continued.
The company will hope for enhanced performance in the next quarter for fresh bakery products in the US after operations began at its new production site in Hamilton, Ontario, on 28 September this year.
Production lines for rolls and breads are now in operation, and another two lines are planned to start production by the end of 2011.
The final four lines, including flat breads, are expected to be completed for next year.
The Company also plans to gradually transfer production from three bakeries in the Greater Toronto Area, and proceed with their closures between the end of 2011 through to early 2013.
