Pork producer Canada Packers reports third-quarter loss as market turns — SkimNews
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- Canada Packers reported a $28.1-million loss, or 94 cents per diluted share, for the quarter ended Sept. 26, versus a $25.6-million profit, or 86 cents per share, a year earlier.
- Dennis Organ said the downturn resulted in significant margin compression across the industry, describing the deterioration in market conditions as sharp and unusual.
- Canada Packers recorded a $47.6-million non-cash decrease in the fair value of biological assets, compared with $4.9 million in the same quarter last year.
- Canada Packers earned 23 cents per share on an adjusted basis, down from adjusted profit of $1.13 per share a year earlier.
- Canada Packers generated $420.7 million in sales, down from $481.80 million a year earlier, when the comparison included operations not acquired in its spinoff from Maple Leaf Foods.
Why it matters: For Canada Packers shareholders, the swing from $25.6 million in profit to a $28.1 million loss is material, while adjusted earnings fell from $1.13 to 23 cents per share. The $47.6 million non-cash decline in biological-asset values was included in the result, showing that the headline loss contains a large valuation component.
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