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For FY 2021ending December 31st 2021, the Plant Protein segment posted sales of $143.6 million that generated a negative contribution to operating earnings of $(110.8) million and an adjusted EBITDA margin of -69 percent.
 The Plant Protein segment comprises refrigerated plant protein products, grain-based protein and vegan cheese distributed to retail, food service and industrial channels. The major brands marketed by Maple Leaf Foods include Lightlife® and Field Roast Grain Meat Company™.
Maple Leaf posted disproportionately high sales, general and administrative (SG&A) expenses in relation to sales "reflecting the evolution of the company's plant protein strategy to drive sales growth and secure market share and a rapidly growing market". It is evident that Maple Leaf has invested in advertising and promotion to create brand awareness and to expand distribution. During FY 2021, Maple Leaf reduced previously high SG&A expenses to $103.6 million compared to $112.3 million for FY 2020. Despite judicious trimming, SG&A expenses were equivalent to 72.1 percent of sales in FY 2021 compared to 68.3 percent of sales for the previous year.
In the Q4 report, Michael McCain, CEO of Maple Leaf commented “The Company has made significant progress in the critical review of the Plant Protein category announced in late 2021. While work is continuing, analysis to date demonstrates a clear slowdown in projected growth rate for the overall category compared to very high growth rates predicted in 2019. The Company will therefore be adjusting its strategy and investment thesis and is setting a new target to deliver neutral or better Adjusted EBITDA within an 18-month timeframe.
(Subscribers are directed to the review of the Q4 and FY 2021 report of Beyond Meat Inc.(BYND) in this edition and retrievable under the SEARCH tab in April)
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