Maple Leaf Foods Inc T.MFI

Alternate Symbol(s): MLFNF

Consumer Defensive Packaged Foods

Maple Leaf Foods Inc. is a carbon neutral company. Its portfolio includes prepared meats, ready-to-cook and ready-to-serve meals, snacks kits, value-added fresh pork and poultry, and plant protein products. It produces food products under brands, including Maple Leaf, Maple Leaf Prime, Maple Leaf Natural Selections, Schneiders, Schneiders Country Naturals, Mina, Greenfield Natural Meat Co., Lightlife, Field Roast and others. Its featured Schneiders products include Schneiders Red Hots Original Wieners; Schneiders Smoked Maple Ham; Schneiders Thick Cut Hickory Smoked Bacon; Schneiders Deli Best Hardwood Smoked Olde Fashioned Ham, and others. Its featured Greenfield Natural Meat Co. products include Greenfield Natural Meat Co. Bacon; Greenfield Natural Meat Co. Breakfast Sausage Rounds; Greenfield Natural Meat Co. Baked Honey Ham; Greenfield Natural Meat Co. Natural Pepperoni Pizza Lunch Kit, and others. It does business in Canada, the United States and Asia.

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Post by Betteryear2on Nov 04, 2021 8:52am

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Post# 34085818

Third Quarter 2021 Financial Results

Meat Protein delivers outstanding top-line growth of 13.4%, Adjusted EBITDA Margin of 13.0% and Adjusted EBITDA dollar growth of 21.8%; Reassessing Plant Protein investment

TSX: MFI
www.mapleleaffoods.com

MISSISSAUGA, ON, Nov. 4, 2021 /PRNewswire/ - Maple Leaf Foods Inc. ("Maple Leaf Foods" or the "Company") (TSX: MFI) today reported its financial results for the third quarter ended September 30, 2021.

"Our meat protein business delivered exceptional results in the third quarter," said Michael H. McCain, President and CEO of Maple Leaf Foods. "Our revenue grew by over 13% and our Adjusted EBITDA grew by 22%, driven by a 90 bps improvement in margin to 13.0%, the result of outstanding execution of our strategies to become the most sustainable protein company on earth. I am grateful for the tireless commitment of our teams who are consistently delivering, and confident in achieving our near-term targets.

"We are seeing a marked slowdown in the plant-based protein category performance which may suggest systemic change in the extremely high growth rates expected by the industry," continued Mr. McCain. "While our overall focus to create long-term value for all stakeholders remains unchanged, and investments to date have been well calculated, well executed and have delivered underlying value, we have always been prepared to re-examine that investment thesis if circumstances change. Given current category performance, such a review is underway which will either affirm or adjust our strategies and investment thesis going forward."

Third Quarter 2021 Highlights

Total Company sales grew 12.4% to $1,188.6 million, with an Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA")(i) Margin of 9.7%, up from 7.8% last year.
Meat Protein Group sales grew 13.4% to $1,150.3 million, driven by higher fresh pork and poultry prices and a favourable mix-shift towards branded products and sustainable meats.
Meat Protein Group Adjusted EBITDA grew by 21.8% to $149.3 million which is a 90 bps increase in Adjusted EBITDA Margin to 13.0% (13.2% excluding start-up costs related to near completion Construction Capital(i)), compared to 12.1% last year.
Plant Protein Group sales have declined by 6.6% (decline of 1.2% excluding the impact of foreign exchange) due to declining retail sales within the category, offset by growth in foodservice volumes.
Net earnings were $44.5 million, compared to $66.0 million last year primarily due to non-cash fair value changes in biological assets and derivative contracts.
Capital expenditures were $152.9 million and consisted predominantly of Construction Capital of $123.3 million, the majority of which was related to the ongoing construction of the London, Ontario poultry facility and the expansion of the previously announced Bacon Centre of Excellence in Winnipeg, Manitoba.
Balance sheet remained strong with Net Debt(i) of $1,089.5 million and undrawn committed credit of over $800 million.
2021 Outlook: Meat Protein Group targets unchanged – mid-to-high single digit sales growth and Adjusted EBITDA Margin expansion. Driven largely by the lower than expected growth in the plant protein category, the Company does not expect to meet its Plant Protein Group sales growth target for the second half of 2021 and will not likely have a further view on near term sales growth targets until it has completed its reassessment of the category.