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MAPLE LEAF FOODS INC. REPORTS FIRST QUARTER RESULTS

 TORONTO, May 19 /PRNewswire/ -- Maple Leaf Foods Inc. (Toronto: MLF) today announced its results for the first quarter ended March 31, 1993.
 Net earnings from continuing operations for the first quarter were $10.2 million or 13 cents per share compared to $12.0 million or 15 cents per share in 1992. Total net earnings for the quarter amounted to $10.2 million or 13 cents per share compared to $15.3 million or 19 cents per share in 1992. The 1992 first quarter total net earnings include the results of the discontinued Edible Oils business and the gain on sale of this business.
 Charles Bowen, president and chief executive officer, said, "As expected, the first quarter trading environment continued to be characterized by the recessionary conditions and food price deflation which prevailed during 1992. Recovery of the Canadian economy has been slow and the retail food sector continues to be affected by reduced demand, highly competitive pricing and trading down by consumers to lower margin products. Key to our success in the current economic climate continues to be; increased focus on costs, productive management of capital employed and internal emphasis on growth through the introduction of new products, and strong support of our brands. We expect results to improve in the remainder of the year."
 Review of Operations
 In the Consumer Foods Group, earnings decreased from last year. Both the Prepared Meats and Grocery Products businesses were affected by high raw material costs which are difficult to recover in this competitive pricing environment. The Frozen Foods business recorded improved results following the restructuring last year and the successful introduction of retail frozen poultry portions. Food Service continues to be affected by volume and margin pressures, and we continue to explore alternatives for this business. In Prepared Meats, the integration of the Shopsy's business continues, and profit enhancing marketing initiatives are being implemented. The Grocery Products business benefited from the launch of the Michelina's Italian frozen dinner entrees. Expansions to this line are planned for later in the year in addition to further Cadbury line extensions and the introduction of specialty cake mix items such as Blue Jay Cakes.
 Milling and Baking Group earnings were lower primarily as a result of higher wheat costs in the Flour Milling business. The Bakeries continue to experience pressure on pricing as a result of the competitive retail environment. The acquisition of the additional interests in McGavin's and Barbados Mills has resulted in incremental contributions in the first quarter compared to 1992. Country Style Donuts, Buns Master and MLM International continue to record good results. Product promotions such as Dempster's Toronto Blue Jays baseball cards promotion, are expected to improve Bakery volumes in the next quarter.
 The Agribusiness Group earnings increased sharply from 1992. The Shur-Gain business showed improvement over last year as a result of a realignment of operations and improved feed volumes. The Fresh Pork business experienced improved earnings from operations but continues to experience difficulties in sourcing hogs. The Rendering business continued to perform well. The Poultry business experienced reduced margins, but reported gains over last year primarily as a result of the rationalization of facilities in Ontario and the resultant production efficiencies.
 Interest income for the first quarter amounted to $2.9 million, which is $1 million higher than last year, due to effective cash management and proceeds from the sale of the Edible Oils business in March 1992 partially offset by lower interest rates.
 Cash, net of debt, has decreased from $205 million at Dec. 31, 1992, to $172 million at the end of March 1993 principally due to substantial tax payments made in the first quarter of 1993.
 Dividends
 The directors declared a quarterly dividend of 9.5 cents per share, payable June 30, 1993, to shareholders of record on June 5, 1993.
 Maple Leaf Foods is Canada's largest food processing company with operations across Canada, in the United States and Europe. The company's products include fresh and prepared meats, poultry, flours, bakery mixes, fresh and frozen bakery products, seafood and animal feeds. Its products are sold to retail, food service, wholesale, agricultural and industrial customers worldwide.
 MAPLE LEAF FOODS INC.
 Consolidated Statement of Earnings


(Unaudited; in thousands of Canadian dollars, except per-share amounts)
 Quarter ended March 31 1993 1992
 Sales $632,377 $637,763
 Earnings from continuing
 operations 13,235 17,428
 Other income 2,237 1,998
 Interest income 2,877 1,869
 Earnings before income taxes 18,349 21,295
 Income taxes 6,973 8,183
 Earnings before minority interest 11,376 13,112
 Minority interest 1,187 1,144
 Net earnings from continuing
 operations $10,189 $11,968
 Discontinued operations -- 3,311
 Net earnings $10,189 $15,279
 Earnings per share
 Net earnings from continuing
 operations $0.13 $0.15
 Net earnings $0.13 $0.19
 Dividends per share declared $0.095 $0.095
 Weighted average number of shares
 (millions) 80.9 80.8
 Consolidated Balance Sheets
 (Unaudited; in thousands of Canadian dollars)
 At March 31 1993 1992
 ASSETS
 Current Assets
 Cash and cash equivalents 218,220 286,627
 Accounts receivable 205,575 234,640
 Inventories 190,169 184,673
 Prepaid expenses 12,105 12,561
 Total 626,069 718,501
 Investments in associated companies 52,917 47,368
 Property and equipment 521,246 503,849
 Goodwill 128,597 113,425
 Other assets 38,470 18,763
 Total $1,367,299 $1,401,906
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current Liabilities
 Accounts payable and
 accrued charges 263,722 327,430
 Income and other taxes payable 23,524 35,142
 Current portion of long-term debt 2,327 53,071
 Total 289,573 415,643
 Long-term debt 43,616 12,529
 Deferred income taxes 41,943 28,012
 Minority interest 46,118 38,878
 Shareholders' equity
 Share capital 840,403 839,948
 Retained earnings 103,782 67,097
 Unrealized foreign currency
 adjustment 1,864 (201)
 Sub total 946,049 906,844
 Total $1,367,299 $1,401,906
 Consolidated Statements of Changes in Financial Position
 (Unaudited; in thousands of Canadian dollars)
 Quarter ended March 31 1993 1992
 Cash provided by (used in)
 Operating activities
 Net earnings from continuing
 operations $10,189 $11,968
 Depreciation and amortization 12,324 12,345
 Minority interest 1,187 1,144
 Deferred income taxes 1,966 218
 Undistributed earnings of
 associated companies 1,671 1,383
 Changes in non-cash working
 capital (38,751) (36,351)
 Other (1,499) (255)
 Total (12,913) (9,548)
 Financing activities
 Increase in share capital 11 349
 Dividends paid (7,681) (7,676)
 Dividends paid to minority
 interest (855) (542)
 Repayment of long-term debt (2,534) (12,345)
 Shares issued by partly owned
 subsidiaries 127 389
 Total (10,932) (19,825)
 Investing activities
 Additions to property and
 equipment (9,607) (10,433)
 Disposals of property and
 equipment 125 1,255
 Purchase of net assets of
 businesses (970) (6,378)
 Investments in associated and
 other companies (601) --
 Total (11,053) (15,556)
 Cash used in continuing
 operations (34,898) (44,929)
 Cash provided by discontinued
 operations -- 102,583
 Cash, net of bank indebtedness
 beginning of period 253,118 228,973
 Cash end of period $218,220 $286,627
 As at March 31,
 1993 1992
 Net cash (borrowings) $172,277 $221,027
 -0- 5/19/93
 /CONTACT: Lewis Rose, senior VP and CFO, 416-926-2023, or Art Devlin, senior VP-corporate affairs, 416-926-2047, both of Maple Leaf Foods/
 (MLF.)


CO: Maple Leaf Foods Inc. ST: Ontario IN: FOD SU: ERN

CK -- NY040 -- 0235 05/19/93 11:13 EDT
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Date:May 19, 1993
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