Maple Leaf Foods Earns C$47.7M Profit In 1Q; Shares Fall 4%

Maple Leaf Foods Inc (MFI) shares dropped more than 4% Wednesday morning despite Canada’s leading consumer protein company reporting a rise in first-quarter sales and profit. Lower plant protein sales Read More... The post Maple Leaf Foods Earns C$47.7M Profit In 1Q; Shares Fall 4% appeared first on TipRanks Financial Blog.

Maple Leaf Foods Earns C$47.7M Profit In 1Q; Shares Fall 4%

Maple Leaf Foods Inc (MFI) shares dropped more than 4% Wednesday morning despite Canada’s leading consumer protein company reporting a rise in first-quarter sales and profit. Lower plant protein sales might have weighed on MFI shares.

Maple Leaf’s sales came in at C$1.05 billion for the quarter ended March 31, increasing 3% from C$1.02 billion in the prior-year quarter. Meat protein group sales increased 3.3%, while plant protein group sales fell by 8.1%.

Meanwhile, 1Q 2021 net earnings were C$47.7 million (C$0.39 per diluted share), compared with a loss of C$3.7 million (C$0.03 per diluted share) in the first three months of 2020. On an adjusted basis, Maple Leaf earned C$0.26 per share in the first quarter of 2021, up 23.8% from an adjusted profit of C$0.21 a year earlier.

Maple Leaf’s President and CEO Michael H. McCain said, "Our number one priority is to keep our people healthy during this global crisis, and beyond. At the same time, we are delivering on our financial commitments, including both significant revenue growth and margin expansion in our meat protein business, while re-investing for extremely high long-term revenue growth in the strategically important plant protein business."

In 2021, Maple Leaf expects to achieve mid-to-high single-digit sales growth in the meat protein group. As for the plant protein group, the company expects sales growth for the year to be broadly in line with the strategic objective of 30%. (See Maple Leaf Foods Inc stock analysis on TipRanks)

In April, Canaccord Genuity analyst Derek Dley reiterated a Buy rating on MFI with a C$40.00 price target (50% upside potential).

Overall, the consensus on the Street is that MFI is a Strong Buy based on 5 Buys and 1 Hold. The average analyst price target of C$37.08 implies a 39% upside potential to current levels. Shares have fallen by approximately 5% year-to-date.

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The post Maple Leaf Foods Earns C$47.7M Profit In 1Q; Shares Fall 4% appeared first on TipRanks Financial Blog.

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good natured Products To Acquire Illinois-Based Ex-Tech Plastics; Shares Pop 20%

Shares of good natured Products Inc (GDNP) traded up to 20% higher on Wednesday morning after the earth-friendly product company announced it had signed a deal to acquire all Ex-Tech Read More... The post good natured Products To Acquire Illinois-Based Ex-Tech Plastics; Shares Pop 20% appeared first on TipRanks Financial Blog.

good natured Products To Acquire Illinois-Based Ex-Tech Plastics; Shares Pop 20%

Shares of good natured Products Inc (GDNP) traded up to 20% higher on Wednesday morning after the earth-friendly product company announced it had signed a deal to acquire all Ex-Tech Plastics Inc’s operating assets.

good natured Products bought the manufacturer of high-quality, rigid plastic sheets and real estate assets owned by related company ETP Inc for approximately C$14.1 million in cash.

CEO Paul Antoniadis said, "We are extremely pleased to build on our long-standing partnership with Ex-Tech that dates back well before March 2016 when we acquired Ex-Tech's bioplastic division. The combined entity positions us as one of North America's leading commercial sheet extruders, serving over 200 thermoforming packaging companies across North America. This acquisition firmly secures the Company's market positioning within our industrial roll stock market segment, while setting the stage for future expansion in production and manufacturing capabilities."

The acquisition of Ex-Tech will nearly double good natured Products’ revenue and provide cost synergies in terms of eliminating the company’s existing outsourcing arrangement and its additional scale of operations. The Ex-Tech acquisition represents the company's third acquisition in the past 12 months. (See Good Natured Products Inc stock analysis on TipRanks)

Yesterday, Raymond James analyst Steve Hansen reiterated a Buy rating on GDNP and a C$1.50 price target (24% upside potential).

Hansen stated, “In short, we believe Good Natured is superbly positioned to capitalize on consumer’s shifting preference away from petroleum-based plastics toward sustainable, plant-based packaging and everyday products. Coupled with the company’s unique strategy and transformative recent acquisitions, we see outsized growth opportunities ahead.”

The rest of the Street is bullish on GDNP with a Strong Buy consensus rating based on 3 Buys. The average analyst price target of C$1.70 implies a 40.5% upside potential to current levels.

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The post good natured Products To Acquire Illinois-Based Ex-Tech Plastics; Shares Pop 20% appeared first on TipRanks Financial Blog.

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