Net earnings for the quarter decreased from $37.6m to $26.6m compared to the same period last year, while for the nine months, net earnings were down from $105m to $89.4m.
Lower fresh market values affected total sales for Q3, as figures declined slightly by 3.6% in comparison to the previous year. For the nine months, sales decreased by 1.7% to $2.601.6m from $2.645.4m.
Maple Leaf Foods’ CEO Michael McCain said it had been a “challenging period”, but remained upbeat about the company’s performance.
“These abnormal markets have no impact on our core business strategies or our longer-term financial goals,” said McCain. “We are focused on key levers of value creation over time, including our sustainability agenda, our brands, strategic acquisitions and cost reduction.”
Challenging market conditions in the pork sector also hit the business’ adjusted EBITDA margin for the three months, as it fell from 10.6% to 9.3%, and by 10.9% to 9.8% for the nine months in comparison to last year.
During the quarter, Maple Leaf Foods completed the acquisition of Cericola Farms as part of its strategy to expand its position in the premium fresh poultry and cured meats sectors.
Meanwhile, at the beginning of October, the business also announced that it had agreed to acquire 100% of the outstanding shares of VIAU Foods, which produces and distributes Italian cooked, dry-cured and charcuterie meats.
The deal is anticipated to be in the region of $215m and is expected to be finalised in late 2018, subject to a regulatory review.