Maple Leaf Foods Inc T.MFI

Alternate Symbol(s): MLFNF

Consumer Defensive Packaged Foods

Maple Leaf Foods Inc. is a carbon neutral company. The Company's portfolio includes prepared meats, ready-to-cook and ready-to-serve meals, snacks kits, value-added fresh pork and poultry, and plant protein products. It operates through two segments: the Meat Protein Group and the Plant Protein Group. The Meat Protein Group segment is comprised of prepared meats, ready-to-cook and ready-to-serve meals, and value-added fresh pork and poultry products that are sold to retail, foodservice and industrial channels, and agricultural operations in pork and poultry. It includes brands such as Maple Leaf, Maple Leaf Prime, Schneiders, Schneiders Country Naturals, Mina, Greenfield Natural Meat Co., and many regional brands. The Plant Protein Group segment is comprised of refrigerated plant protein products, grain-based protein and vegan cheese products sold to retail, foodservice and industrial channels. The Plant Protein Group includes the brands Lightlife and Field Roast.

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Maple Leaf Foods Inc > Why is this stock falling so hard?

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Comment by bossuon Oct 07, 2020 8:47am

146 Views

Post# 31679076

RE:Why is this stock falling so hard?

From this morning Globe and Mail (Oct 7)

From Canacord.

Positive and hopely buy some yeasterday at $ 26,20

Though it continues near-term headwinds stemming from the COVID-19 pandemic, Canaccord Genuity analyst Derek Dley expects Maple Leaf Foods Inc. (

MFI-T

-1.90%

) to see year-over-year margin growth when it reports third-quarter results on Oct. 27.

For the quarter, Mr. Dley is forecasting EBITDA of $94-million and earnings per share of 20 cents. Both fall short of the consensus expectations on the Street ($98-million and 24 cents).

“We are forecasting healthy growth at the [Meat Protein Group], with revenue up 6 per cent year-over-year to $1.010-billion, driven by continued strength in the company’s sustainable meats platform in the U.S. and Canada, which generates higher margins than the company’s legacy business,” he said. "However, while sales into China roughly doubled year-over-year during Q2/20, caution around COVID-19 limited exports into China during Q3/20, which has tempered our previous revenue and margin growth assumptions somewhat.

“Importantly, Maple Leaf commented on its Q2/20 earnings call that initiatives related to COVID-19, such as increased sanitization procedures, and reduction in staff in its processing facilities at any given time, are likely to add a total of $25-million in incremental costs over the back half of 2020. Furthermore, we believe the company faced some incremental inefficiencies related to labour shortages due to the heightened anxiety around COVID-19. As a reminder, COVID-19 related initiatives led to a $19-million increase in costs during Q2/20.”

In a research report released Wednesday, Mr. Dley trimmed his earnings and revenue projections for both 2020 and 2021, however, he maintained a “buy” rating and $42 target for Maple Leaf shares. The average is currently $35.56.

“In our view, Maple Leaf continues to offer long-term investors an attractive growth profile at an inexpensive valuation, given the company’s leading market share, strong balance sheet, and high-quality brand portfolio,” he said.