Maple Leaf stock drops on disappointing quarterly results

Maple Leaf Foods Inc. saw its share price drop as much as 18% on the Toronto Stock Exchange after it said challenges in labour markets, supply chains and inflation pushed it to a net loss for the second quarter.

The company said it had a net loss of $54.6 million, or 44 cents per share for the quarter ending June 30, compared with earnings of $8.8 million or seven cents per share for the same quarter last year.

Analysts had been expecting earnings of 12 cents a share, according to financial data firm Refinitiv.

The company said the margin of its meat protein group fell short of guidance because of the wider economic challenges, while it took a $18.6 million restructuring charge on its plant protein group as it looks to "rightsize" the business.

Total company sales were up 3.1% to $1.2 billion, while sales in the plant protein group were down 15.2% to $40.8 million.

Maple Leaf's shares closed down $4.63, or 17.2 per cent, to $22.33 on the Toronto Stock Exchange on Friday after trading as low as $22.02 earlier in the day.