Statistics Canada released its December 2017 monthly survey of manufacturing on February 16. Manufacturing sales dropped 0.3% to $55.5 billion after an impressive 3.8% jump in November. Lower sales in the food manufacturing industry was one of the primary drags on manufacturing sales in the final month of 2017. Sales in the food industry fell 2.6% to $8.5 billion after a 3.6% increase in November.
Let’s take a look at four food stocks that also offer solid income going forward. After an early dip in the S&P/TSX Index in 2018, investors may want to take this opportunity to buy some of these top food stocks.
High Liner Foods Inc. (TSX:HLF)
High Liner is a processor and marketer of packaged frozen seafood products. Shares have dipped 16.4% in 2018 as of close on February 21, but the stock jumped 5.7% on Tuesday. The company released its fourth-quarter results on the same day.
Sales climbed to $263 million compared to $208.8 million in 2016. Net income increased to $14.2 million, or $0.43 per diluted share, compared to $6.7 million, or $0.21 per share, in the prior year. For the full year, gross profit dropped by $15.7 million to $186.1 million, and net income fell $0.6 million to $31.7 million. The company delivered a quarterly dividend of $0.145 per share.
Maple Leaf Foods Inc. (TSX:MFI)
Maple Leaf stock dropped 4% on February 21. Shares have declined 6.2% in 2018 thus far. Maple Leaf released its 2017 fourth-quarter and full-year results on the same day.
Sales increased 5.7% in 2017 to $3.33 billion, and adjusted EBITDA grew 10.3% to $263.8 million. Higher sales volumes and the addition of Lightlife contributed to improved results in 2017. The company also signed a definitive agreement on November 30, 2017, to acquire The Field Roast Grain Meat Company, SPC.
Maple Leaf also hiked its dividend to $0.13 per share from its previous $0.11 per share.
Premium Brands Holding Corp. (TSX:PBH)
Premium Brands is a Richmond-based specialty food manufacturing and distribution business with operations across Canada and the United States. Shares have climbed 1.7% in 2018 as of close on February 21. The company is expected to release its 2017 fourth-quarter and full-year results in March.
In the third quarter of 2017, Premium Brands posted record third-quarter revenue of $557.6 million and record adjusted EBITDA of $49.5 million. It also reported record trailing four quarters cash flow of $135.5 million and commenced sales at its new sandwich production facility in Arizona. The company delivered a quarterly dividend of $0.42 per share, representing a 1.6% dividend yield.
Saputo Inc. (TSX:SAP)
Saputo is a Montreal-based dairy company. Saputo stock has dropped 10.3% in 2018 thus far. The company released its fiscal 2018 third-quarter results on February 1. In the conference call, Saputo leadership criticized Canadian officials for failing to appropriately secure an adequate deal for dairy producers in the latest revision.
In the third quarter, Saputo saw net earnings surge 70.7% to $337 million; however, adjusted net earnings were down 7.2%. It reported revenues of $3.02 billion, which were up 1.9% year over year. Saputo also declared a dividend of $0.16 per share, representing a 1.5% dividend yield.
