041037 Beefed-Up Operations Increase Profits for Maple LeafOctober 28, 2004Maple Leaf Foods Inc. reported plump summer-quarter profits yesterday as its acquisition-expanded meat operations feasted on hearty demand while its bakery division withstood the low-carbohydrate diet trend. "Obviously this was a very solid quarter, a very satisfactory quarter, with continued strong momentum through the balance of 2004," Michael McCain, president and chief executive, said in a conference call. "Sales were up 36 per cent to $1.7 billion, largely driven by the Schneider acquisition and high commodity values." McCain said the company increased prices for many products "to offset rising costs in our bakery business and in the processed meats business." He highlighted the rise in the price of pork because Japan has been substituting that meat for beef and chicken amid fears of mad cow disease and Asian bird flu. He also stressed that Canada Bread Co. Ltd., of which Maple Leaf owns 84.7 per cent, increased sales despite the effects of low-carb, high-protein diets like the Atkins diet. Canada Bread makes Dempsters breads, sold in whole wheat and "Carb Wise" variations. Maple Leaf earned $27.9 million, or 24 cents per share, in the quarter ended Sept. 30. That compared with a profit of $299,000, or a loss of 1 cent per share, in last year's third quarter, which included $6.9 million in restructuring costs. Quarterly revenue swelled to $1.7 billion from $1.3 billion. In a separate release yesterday, Canada Bread reported quarterly earnings of $19 million, or 75 cents per share, on sales of $335.7 million. In the same quarter last year the company made a profit of $11.3 million, or 44 cents per share, on sales of $324 million. Shares in Maple Leaf closed up 37 cents at $13.70 in Toronto. Canada Bread gained $1.25 to $31.40.
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