Maple Leaf Foods Inc. · TSX:MFI
Maple Leaf Foods — Q1 2025 Earnings Presentation
28 slides from Maple Leaf Foods's earnings presentation, May 8, 2025
Slide 1: First Quarter 2025 Financial & Business Results
First Quarter 2025 Financial & Business Results
Slide 2: Forward-looking statements and non-IFRS metrics
Forward-looking statements and non-IFRS metrics Forward-Looking Information: This presentation contains “forward-looking information” within the meaning of applicable securities law. These statements are based on current expectations, estimates, forecasts, and projections about the industries in whi
Slide 3: Maple Leaf Foods is an iconic, purpose-driven Canadian food company
Maple Leaf Foods is an iconic, purpose-driven Canadian food company, uniquely positioned to meet the growing global demand for sustainably produced protein ~$5B ~13,500 22 #1 and #2 Leading First Manufacturing Prepared Meats Carbon Neutral Annual Sales Employees RWA Producer Facilities Brands Major
Slide 4: Driven by our purpose of Raising the Good in Food
Driven by our purpose of Raising the Good in Food, Maple Leaf Foods has demonstrated authentic leadership in sustainability and shared value creation Make Better Food Take Better Care Nurture a Better Planet • Established leadership in Sustainable Meats production, • Industry leader in workplace saf
Slide 5: The Maple Leaf Blueprint serves as our strategic compass
The Maple Leaf Blueprint serves as our strategic compass MAPLE LEAF FOODS — Q1 2025 BUSINESS AND FINANCIAL REVIEW | MAY 8, 2025 5
Slide 6: The execution of our Blueprint is improving long-term fundamentals
The execution of our Blueprint is improving long-term fundamentals Mid-single-digit Revenue growth Disciplined Capital Expenditures Improved Profitability (Adjusted EBITDA1) +4.4% Supported by returns from large-scale capital projects $629M $603M London Poultry and Bacon COE Capital Investments $553
Slide 7: First Quarter 2025 Financial Results & Business Update
First Quarter 2025 Financial Results & Business Update
Slide 8: Today's key messages – Q1, 2025
Today’s key messages – Q1, 2025 Sales • Revenue growth accelerated to 8.2% with solid growth across Prepared ($ millions) Foods, Poultry, and Pork +8.2% • Adjusted EBITDA1 grew by 43% to $166 million2 driven by pork markets, improved mix within Prepared Foods and Poultry, and large-scale capital $1,
Slide 9: First quarter operational highlights
First quarter operational highlights Maple Leaf Foods (CPG) Pork Complex ~25% (Canada Packers) of Annual Sales Prepared Foods ~55% Poultry ~20% of Annual Sales of Annual Sales Strong sales growth in a challenging Value-added poultry driving top line Markets trending to more normal levels, consumer e
Slide 10: Q1 2025 Results
Q1 2025 Results Q1 Results Q1 2025 Q1 2024 Change Sales $1,241.3 $1,147.3 8.2% Gross profit $217.8 $226.3 (3.8)% SG&A $114.8 $110.0 4.4% Adjusted Operating Earnings1 $95.7 $53.0 80.8% Adjusted EBITDA1 $166.3 $116.4 42.9% Adjusted EBITDA margin1 13.4% 10.1% 330 bps Free Cash Flow1 $(13.6) $73.6 nm Al
Slide 11: Balance Sheet
Balance Sheet Balance Sheet 31-Mar-25 31-Mar-24 Change Total Assets $4,438 $4,685 $(247) Long Term Debt $1,371 $1,528 $(157) Total Long Term Debt2 $1,673 $1,929 $(256) Net Debt1 $1,554 $1,723 $(169) Net Debt to LTM Adjusted EBITDA1 2.6x 3.7x (1.1x) Shareholders’ Equity $1,573 $1,553 $20 All figures
Slide 12: Pork markets, while trending to more normal levels, negatively impacted Q1
Pork markets, while trending to more normal levels1, negatively impacted Q1 by approximately $12.9M or 105 bps Vertically Integrated Margin Industry Vertically Integrated Margin USDA Pork Cutout – Industry Hog Production Cost remained stable in Q1 $140 $55 USDA Pork Cutout – Industry Hog Production
Slide 13: 2025 Outlook
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Slide 14: We are on track to execute our 2025 priorities
We reiterate our guidance for 2025 Adjusted EBITDA of $634 million or greater2 Drive mid-single-digit Revenue 8.2% Revenue growth achieved in Q1 growth • Expand geographic reach in the U.S. market • Leverage leadership in Sustainable Meats • Marketing, Innovation and Advertising investments to build
Slide 15: Mid-single-digit revenue growth driven by execution of proven growth strategies
Mid-single-digit revenue growth driven by execution of proven growth strategies Investing in portfolio of leading brands Accelerating the pace of Leveraging leadership in to build consumer demand impactful innovation Sustainable Meats Expanding geographic reach in Plugging unique capabilities into E
Slide 16: Innovating with impact in Spring 2025 through the launch of 28 new items
Innovating with impact in Spring 2025 through the launch of 28 new items Delicious Made Easy Sizzling Summer Grilling Leading in Sustainable Meats Elevating Entertaining & Snacking Advancing Plant-based 4 5 % MAPLE LEAF FOODS — Q1 2025 BUSINESS AND FINANCIAL REVIEW | MAY 8, 2025 16
Slide 17: Leveraging our portfolio of leading Brands
Leveraging our portfolio of leading Brands #1 #2 #1 Schneiders is the #1 brand in Maple Leaf is the #2 brand in Greenfield is the #1 brand in Packaged Meats Packaged Meats Sustainable Packaged Meats #1 #1 #3 Maple Leaf Prime is the Mina is the #1 Halal brand in In U.S. Refrigerated Plant Protein; #1
Slide 18: And proudly celebrating our Canadian roots
And proudly celebrating our Canadian roots MAPLE LEAF FOODS — Q1 2025 BUSINESS AND FINANCIAL REVIEW | MAY 8, 2025 18
Slide 19: Multiple factors support confidence in delivering Adjusted EBITDA of $634 million or greater
Multiple factors support confidence in delivering Adjusted EBITDA of $634 million or greater Full year benefits from Excellence in Brand and Fuel for Growth Executing Pork Capital Projects Revenue Management Initiative Complex Playbook Leveraging the capabilities of Capitalize on the growing Acceler
Slide 20: Investor friendly capital allocation priorities – increased quarterly dividend
Investor friendly capital allocation priorities – increased quarterly dividend 10th consecutive annual dividend increase per share Annual ($ per share) ✓ Maintaining leverage ratio within investment-grade2, Q1 Net Debt to LTM Adjusted EBITDA3 within target range at $0.96 2.6x +11.6% $0.88 $0.84 CAGR
Slide 21: Unlock Shareholder value through the Canada Packers Spin-off
Unlock Shareholder value through the Canada Packers Spin-off Transaction on track to close upon receipt of customary approvals in Key milestones the back half of 2025 ✓ Submit advance ruling request to ✓ The two independent public companies will each be unleashed with a CRA (complete) sharper focus
Slide 22: Supplemental Financial Slides
Supplemental Financial Slides Q1 2025 MAPLE LEAF FOODS — Q1 2025 BUSINESS AND FINANCIAL REVIEW | MAY 8, 2025 22
Slide 23: Reconciliation of non-IFRS metrics – Adjusted Operating Earnings, Adjusted EBITDA and Margin
Reconciliation of non-IFRS metrics – Adjusted Operating Earnings, Adjusted EBITDA and Adjusted EBITDA Margin Three months ended March 31, ($ millions) (i) (Unaudited) 2025 2024 Earnings before income taxes $70.6 $73.8 Interest expense and other financing costs $29.6 $42.1 Other expense $1.2 $1.2 Res
Slide 24: Reconciliation of non-IFRS metrics – Adjusted Earnings per Share
Reconciliation of non-IFRS metrics – Adjusted Earnings per Share ($ per share) Three months ended March 31, (Unaudited) 2025 2024 Basic earnings per share $0.40 $0.42 Restructuring and other related costs(i) $0.01 $0.00 (ii) Items included in other expense not considered representative of ongoing op
Slide 25: Reconciliation of non-IFRS metrics – Net Debt
Reconciliation of non-IFRS metrics – Net Debt ($ thousands) As at March 31, (Unaudited) 2025 2024 Cash and cash equivalents $119,051 $206,393 Current portion of long-term debt $(302,009) $(401,538) Long-term debt $(1,370,701) $(1,527,665) Total debt $(1,672,710) $(1,929,203) Net Debt $(1,553,659) $(
Slide 26: Reconciliation of non-IFRS metrics – Free Cash Flow
Reconciliation of non-IFRS metrics – Free Cash Flow ($ thousands) Three months ended March 31, (Unaudited) 2025 2024 Cash provided by operating activities $9,883 $87,325 (i) Maintenance Capital $(23,240) $(13,436) Interest paid and capitalized related to Maintenance Capital $(270) $(263) Free Cash F
Slide 27: Management's estimates on the Pork business spin-off and related Non-IFRS measures
Management’s estimates on the Pork business spin-off and related Non-IFRS measures Last twelve months ended March 31, 2025 (in millions of CAD) Consolidated Maple Canada Packers Maple Leaf Foods(1) Eliminations (unaudited) Leaf Foods Inc. Sales $1,717(2) $3,685(3) ($412)(4) $4,989(5) Estimate of pot
Slide 28: Management's estimates on the Pork business spin-off and related Non-IFRS measures
Management’s estimates on the Pork business spin-off and related Non-IFRS measures Notes: 1 Refers to the business that will be retained after the separation by Maple Leaf Foods Inc. 2 Represents management’s preliminary estimate of sales (both to Maple Leaf Foods and to external third parties) attr