Maple Leaf Foods Inc. · TSX:MFI
Maple Leaf Foods — Q4 2017 Earnings Presentation
14 slides from Maple Leaf Foods's earnings presentation, Feb 21, 2018
Slide 1: Fourth Quarter & Year-End 2017 Results
Fourth Quarter & Year-End 2017 Results
Slide 2: Forward-looking and non-IFRS information
Forward-looking and non-IFRS 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 which the Company operates, as well as
Slide 3: Continued sales and earnings momentum in the fourth quarter
Continued sales and earnings momentum in the fourth quarter Top-line sales growth and balanced portfolio contributed to higher fourth quarter earnings Sales increase of 5.9% Adjusted EBITDA margin of 10.7%, continuing our year-over-year improvement Adjusted EPS of $0.41 per share, up 32.3% from Q4 2
Slide 4: Sustained commercial performance and growth
Sustained commercial performance and growth Higher sales benefited from pricing and volume growth Commercial performance in prepared meats helped offset softened pork complex; reversing the trend from earlier in the year Sales increased in the value-added fresh portfolio led by continued high poultr
Slide 5: Progression in the fourth quarter across key metrics
Progression in the fourth quarter across key metrics Sales Adjusted EBITDA Margin (In Millions) 5.7% $3,522.2 $3,331.8 10.8% 5.9% 10.7% 10.4% 10.3% $828.2 $876.8 Q4 2016 Q4 2017 YE 2016 YE 2017 Q4 2016 Q4 2017 YE 2016 YE 2017 Adjusted EPS Cash on Hand ($/Per Share) (In Millions) 25.2% 32.3% $1.54 $0
Slide 6: We continue to take a balanced, disciplined approach to capital allocation
We continue to take a balanced, disciplined approach to capital allocation Returning value to shareholders Investing in growth Dividends Share Capital Acquisitions buybacks Continued growth Creating value Investment in core Disciplined in dividends as through and strategic approach to earnings grow
Slide 7: Financial performance rewarding shareholders
Financial performance rewarding shareholders Five year returns +199% MFI vs. TSX/S&P and S&P 500 +87% +30% 2012 2013 2014 2015 2016 2017 Source: Bloomberg MFI S&P 500 TSX/S&P 7 | February 21, 2018 | Q4 and Year-end 2017 Results
Slide 8: Accelerating growth in the U.S.
Accelerating growth in the U.S. Our leading U.S. branded platform Double-digit year-over-year sales growth in prepared meats Relationships with all ten of the largest U.S. retailers, building sales capabilities Differentiated sustainable meat platform creating competitive advantage Leveraging cost-c
Slide 9: Creating a leading market position in plant protein
Creating a leading market position in plant protein Acquisition exceeding expectations, contributing to sales and earnings growth Double-digit sales increases following our acquisition Lightlife participating in rapid growth of the category Highly complementary to acquisition of Lightlife Field Roas
Slide 10: Undertaking our most ambitious brand strategy launch in our history
Undertaking our most ambitious brand strategy launch in our history Strategy targets 85% of total prepared meats demand Differentiates our flagship brands Responsible Parenting Connect & Savour Quick Fix Natural and simple Authentic and indulgent Convenience and value Sweeping repositioning of ~30%
Slide 11: Summary
Summary Delivered year-over-year sales and earnings growth, sustaining our margin expansion Benefiting from growth opportunities across our portfolio including development of our U.S. platform Creating a leading market position in plant protein Largest brand and product renovation in our history Sig
Slide 12: Reconciliation of non-IFRS financial measures
Reconciliation of non-IFRS financial measures Adjusted Operating Earnings Q4 2017 Q4 2016 2017 2016 ($ millions) Net earnings 59.1 76.2 164.1 181.7 Income taxes 12.2 28.7 50.2 67.9 Earnings before income taxes (i) 71.2 104.9 214.3 249.6 Interest expense and other financing costs 1.3 1.2 5.2 6.4 Othe
Slide 13: Reconciliation of non-IFRS financial measures
Reconciliation of non-IFRS financial measures Adjusted EBITDA Q4 2017 Q4 2016 2017 2016 ($ millions) Net earnings 59.1 76.2 164.1 181.7 Income taxes 12.2 28.7 50.2 67.9 Earnings before income taxes(i) 71.2 104.9 214.3 249.6 Interest expense and other financing costs 1.3 1.2 5.2 6.4 Items in other ex
Slide 14: Reconciliation of non-IFRS financial measures
Reconciliation of non-IFRS financial measures Adjusted EPS Q4 2017 Q4 2016 2017 2016 ($ per share) Basic earnings per share 0.47 0.57 1.28 1.35 Restructuring and other related costs 0.03 0.02 0.13 0.04 Items included in other expense (income) not considered representative of 0.02 0.00 (0.01) (0.02)