(Mississauga) Maple Leaf Foods shares fell 17.2% on the Toronto Stock Exchange on Thursday after the food maker said labor market challenges, supply chain disruptions and inflation had forced it to make a net loss in the second quarter.
Posted yesterday at 5:32 p.m.
The Mississauga-based company posted a net loss of 54.6 million, or 44 cents per share, for its quarter ended June 30, which compared with a profit of 8.8 million, or 7 cents per share, for the same period a year earlier.
Analysts had expected earnings of 12 cents a share, according to forecasts compiled by financial data firm Refinitiv.
The animal protein group’s margin fell short of the company’s forecast due to broader economic difficulties, while the plant protein group had to take a restructuring charge of 18.6 million due to measures to rationalize its selling, general and administrative expenses.
Overall, Maple Leaf sales rose 3.1% to $1.2 billion. However, sales in the plant protein group fell 15.2% to 40.8 million.
Maple Leaf shares closed down $4.63, or 17.2%, at $22.33 on the Toronto Stock Exchange, after falling as low as $22.02 earlier in the session.