Maple Leaf Foods Inc. · TSX:MFI
Maple Leaf Foods — Q4 2018 Earnings Presentation
17 slides from Maple Leaf Foods's earnings presentation, Feb 28, 2019
Slide 1: Fourth Quarter 2018
Fourth Quarter 2018 Advancing our vision to be the most sustainable protein company on earth
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: Wrapping up a challenging, but important year
Wrapping up a challenging, but important year Flat sales with 90bps of margin compression driven by: Unprecedented market environment Start-up costs to renovate flagship brands Three of four quarters delivered adjusted EBITDA margin of 10% or more Excellent progress on strategic initiative
Slide 4: Setting up for a future of profitable growth
Setting up for a future of profitable growth Advanced sustainability leadership on every dimension Successfully renovated flagship brands Completed three strategic acquisitions Announced investment in world-class poultry facility Delivered continued high double-digit growth in plant protei
Slide 5: Financial results reflect positive momentum in the face of unusual market conditions
Financial results reflect positive momentum in the face of unusual market conditions Q4 2018 FY 2018 Sales ($ Millions) $894 $3,496 Adjusted EBITDA (%) 10.0% 9.9% Adjusted EPS $0.29 $1.22 Net debt ($ Millions) $311 $311 5 Q4 2018 BUSINESS AND FINANCIAL REVIEW – MAPLE LEAF FOODS | FEBRUARY 28, 2019
Slide 6: Continued momentum in underlying performance
Continued momentum in underlying performance Favourable sales mix supported by food renovation Continued growth in plant protein and sustainable meats Strong commercial performance in prepared meats Expanded U.S. footprint driven by sustainable meat offering 6 Q4 2018 BUSINESS AND FINANCIAL
Slide 7: Reconciling “noise” versus “signal”
Reconciling “noise”versus “signal” Adjusted EBITDA Margin 7 Q4 2018 BUSINESS AND FINANCIAL REVIEW – MAPLE LEAF FOODS | FEBRUARY 28, 2019
Slide 8: Value creation with a disciplined approach to capital allocation and an investment grade balance sheet
Value creation with a disciplined approach to capital allocation and an investment grade balance sheet Total Capital Expenditure Dividends per share ($M) ($/share) London Poultry 11.5% Strategic Acquisitions Share buybacks via NCIB ($M) ($M) +11.5% $140 $80 $190 Q4 2018 BUSINESS AND FINANCIAL REVIEW
Slide 9: Our Blueprint: The Path to Our Financial Goal
Our Blueprint The Path to Our Financial Goal… Sustainability strategy Accelerating Investing in poultry network Announced Renovating our brands Launched Growth in plant protein Investing in hyper-growth 14% - 16% Driving a cost culture Everyday 9 Q4 2018 BUSINESS AND FINANCIAL REVIEW – MAP
Slide 10: Accelerating sustainability leadership across our portfolio
Accelerating sustainability leadership across our portfolio 8,000 + stores including 12 of top 15 retailers Greenfield brand continues to Canada’s #1 brand now Raised Sustainable meat platform deliver double-digit growth Without Antibiotics driving U.S. expansion 10 Q4 2018 BUSINESS AND FINANCIAL RE
Slide 11: Messages that parents can relate to
Messages that parents can relate to…and food they can feel great about serving their kids. Super Bowl spots generated 10M + impressions … accelerating awareness for Maple Leaf real food movement 11 Q4 2018 BUSINESS AND FINANCIAL REVIEW – MAPLE LEAF FOODS | FEBRUARY 28, 2019
Slide 12: NEW Lightlife burger wows with great taste, nutrition and exceptional experience
NEW Lightlife burger wows with great taste, nutrition and exceptional experience A breakthrough burger delivering the delicious taste and juicy texture that consumers crave Developed to win in the hyper-growth plant protein market ~US$1 billion North American market Refrigerated segment up 4
Slide 13: Setting up for a future of profitable growth
Setting up for a future of profitable growth Executing on all growth levers to deliver structural EBITDA margin expansion Proven track-record and industry expertise to capitalize on pipeline of opportunities Investing in attractive and growing markets Committed to delivering exceptional retu
Slide 14: Reconciliation of Non-IFRS Measures: Adjusted Operating Earnings
Reconciliation of Non-IFRS Measures Adjusted Operating Earnings Q4 2018 Q4 2017 2018 2017 ($ millions) Net earnings 11.9 59.1 101.3 164.1 Income taxes 6.1 12.2 39.8 50.2 Earnings before income taxes(i) 18.1 71.2 141.1 214.3 Interest expense and other financing costs 4.2 1.3 10.0 5.2 Other expense (i
Slide 15: Reconciliation of Non-IFRS Measures: Adjusted EBITDA
Reconciliation of Non-IFRS Measures Adjusted EBITDA Q4 2018 Q4 2017 2018 2017 ($ millions) Net earnings 11.9 59.1 101.3 164.1 Income taxes 6.1 12.2 39.8 50.2 Earnings before income taxes(i) 18.1 71.2 141.1 214.3 Interest expense and other financing costs 4.2 1.3 10.0 5.2 Items in other expense (inco
Slide 16: Reconciliation of Non-IFRS Measures: Adjusted EPS
Reconciliation of Non-IFRS Measures Adjusted EPS Q4 2018 Q4 2017 2018 2017 ($ per share) Basic earnings per share 0.10 0.47 0.81 1.28 Restructuring and other related costs 0.25 0.03 0.27 0.13 Items included in other expense (income) not considered representative of 0.06 0.02 0.11 (0.01) ongoing oper
Slide 17: Fourth Quarter 2018
Fourth Quarter 2018 Advancing our vision to be the most sustainable protein company on earth