MISSISSAUGA, Ontario – Maple Leaf Foods Inc.’s second quarter financial report showed a decrease in many of the major categories including a sales decrease of 1.8 percent to C$909.2 million or an increase of 1.1 percent after adjusting for IFRS15, foreign exchange and acquisitions.

The Ontario-based meat packer finished the second quarter with adjusted operating earnings reaching C$57.8 million ($44.28 million). In the same quarter of 2017, the number for adjusted operating earnings was C$75 million.

"We anticipated a more challenging year in 2018, driven by temporarily volatile trading environments and our market launch of a comprehensive food renovation in the second quarter, which is largely how it has unfolded so far," said Michael H. McCain, Maple Leaf Foods president and CEO.

During the first six months of the 2018 sales declined 0.6 percent and adjusted EBITDA margin in that time was 10.1 percent compared to 11.2 percent last year.

For the second quarter, the company reported net earnings of C$34.9 million ($26.7 million), or 28 Canadian cents per share, compared to C$37.3 million ($24.7 million) or 29 Canadian cents per share a year ago.

Maple Leaf Foods said in the release that margin expansion in prepared meats and volume growth in plant protein were offset by investments to launch the food renovation in our major brands and lower market values in pork. 

"During this time we have maintained our financial performance above strategic targets, a testament to the value-added strength and balance in our portfolio, we have had excellent underlying commercial and operating gains, and we are enthusiastic about the key initiatives which will create long-term shareholder value," McCain said.

Sales for the first six months decreased 0.6 percent to $1,726.8 million or an increase of 1.7 percent after adjusting for IFRS15, foreign exchange and acquisitions.

On a segment basis, the company reported 2018 adjusted operating earnings in the first six months of C$110.8 million ($84.9 million) compared to C$134 million ($102.6 million) in 2017.