Toronto / CA. (cb) Canada Bread Company Limited, subsidiary of Maple Leaf Foods Inc., announced its financial results for the first quarter ended March 31, 2008. The highlights:
- Significant margin compression due to rising wheat prices;
- Adjusted earnings per share of 0,52 CAD compared to 0,76 CAD last year;
- Fresh Bakery adjusted operating earnings down 42 percent;
- Frozen Bakery adjusted operating earnings down 14 percent.
«The continued rise in wheat prices together with increase in prices of other commodities, such as fuel and general inflation, has had a significant short-term impact on our margins and financial results», said Richard Lan, President and CEO. «We expect to recover these costs and restore margins through ongoing pricing and cost reduction initiatives, although there will be a lag effect as we work with our customers to manage the flow-through of these price increases» (press release).
