Maple Leaf Foods reports Q3 growth
CANADA – Maple Leaf Foods Inc. has reported growth in the fiscal third quarter of 2024, citing improved pork market conditions as a key factor despite a challenging economic environment for consumers.
For the quarter ending Sept. 30, 2024, the company posted a net profit of US$12.6 million, or 10¢ per share, compared to a net loss of US$3.2 million (3¢ per share) in the same period last year.
Total revenue for the quarter reached US$900 million, up slightly from US$884 million in 2023.
Curtis Frank, president and CEO of Maple Leaf Foods, noted that sales rose by 1.8%, driven by a 3% increase in the prepared meats segment.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew to US$104 million, reflecting a 9.1% increase compared to the previous year.
Adjusted operating income also climbed to US$52.6 million from US$50.4 million in the third quarter of 2023.
Frank attributed the results to the company’s focus on its core brands, expansion in sustainable meats, and alignment with customer needs.
The Prepared Foods division saw a 2% increase in sales year-over-year, with prepared meats rising by 3.1% and plant protein products growing by 1.1%.
However, poultry sales declined by 0.9%, which the company linked to production shifts to its London facility and an increased internal use of poultry supplies in prepared meats.
The decrease was partially offset by retail volume growth.
The Pork business unit recorded a 1.1% sales increase, aided by an improved product mix and favorable exchange rates.
As Maple Leaf moves toward spinning off its pork division into a separate entity named Canada Packers, the company has outlined plans for a tax-free structure for the new business, pending regulatory approvals.
The spin-off is scheduled for completion in 2025.
“We remain optimistic about the potential of operating Maple Leaf Foods and Canada Packers as distinct public companies,” Frank said, emphasizing the strategic value of the separation.
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