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Email Content: Poultry Industry News, Comments and more by Simon M. Shane

Maple Leaf Foods Reports on Q1 FY 2023


In a press release dated May 11th Maple Leaf Foods Inc. (MFI-TO) announced results for the first quarter of FY 2023 ended March 31st.


The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as US$ x 1,000 except EPS (conversion of CAN$1=US$0.73)

1st Quarter Ending March 31st.



Difference (%)





Gross profit:




Operating income:             




Pre-tax Income

Net Income







Diluted earnings per share:




Gross Margin (%)




Operating Margin (%)




Profit Margin (%)




Long-term Debt and lease obligations:




12 Months Trailing:




           Return on Assets    (%)




           Return on Equity    (%)




           Operating Margin   (%)




           Profit Margin          (%)




Total Assets

 Intangibles and goodwill  as % of assets






Market Capitalization






Q1 2023 Meat Protein Segment:

Sales, $835 million, up 5.1% from Q1 2022.

Adjusted operating earnings $26 million down 29.4% from Q1 2022.


Q1 2023 Plant Protein Segment:

Sales, $27.3 million, down 20.1% from FY 2022.

Adjusted operating loss $(12.2) million 52.2% improvement from Q1 2022.


Guidance for FY 2013:-

  • “Neutral or better adjusted EBITDA for the Plant Protein Segment in the latter half of 2023.”
  • “Mid to high single digit sales growth; Adjusted EBITDA growth of 14 to 16 percent.”


52-Week Range in Share Price:  $13.76  to  $20.76   50-day Moving average  $19.14

Market Close pre-release May 10th   $18.23  

Market Close post-release May11th  $20.00


Insider shareholding 40.1%. Institutional shareholding 28.0%


In commenting on FY 2022 results Michael H. McCain, president and CEO of Maple Leaf Foods stated, The report included the following commentary:- Although global pork markets continued in their dislocation during our first quarter as expected, we made excellent progress in important dimensions of this inflection point year,” said Michael H. McCain, Executive Chair and CEO of Maple Leaf Foods. “Our supply chain has made exceptional progress back to full normalization, we have advanced our much-needed inflation pricing, we began taking advantage of our renewed access to the Chinese markets and continue to see strong performance across our brands.”


“We have line of sight on being Adjusted EBITDA neutral in our plant protein business this year, and our world-leading London poultry plant start-up is going exceptionally well as it is now operating at a full single shift,” stated Mr. McCain. “At this point, we have full conviction that once pork markets normalize we will meet or exceed our financial targets of 14-16% Adjusted EBITDA margins, all while continuing to advance our vision to be the most sustainable protein company on earth.”


The Quarterly Report included a comment on the Plant Protein Segment stating:- “In late 2021, the Company announced that it was re-evaluating its outlook for the Plant Protein Group and launching a comprehensive review of the overall plant protein category. This decision was driven by a pronounced slowdown in growth rates in the category, particularly in the second half of the year, which fueled the Company’s imperative to identify and thoroughly assess the causes, near and long-term trends, and overall implications. The Company's analysis to date confirms that the very high category growth rates previously predicted by many industry experts are unlikely to be achieved given current customer feedback, experience, buy rates and household penetration. Based on this information, the Company believes that the category will continue to grow at more modest, but still attractive rates. Current estimates suggest that the category will grow at an average annual rate of 10% to 15%, making it a $6 billion to $10 billion market by 2030. Accordingly, the Company has pivoted its strategy and investment thesis for the Plant Protein Group and has set a new goal to deliver neutral or better Adjusted EBITDA in the latter half of 2023. Work is ongoing to implement this pivot. The Company expects at least a 50% improvement in Adjusted EBITDA losses in the second quarter of 2023 versus the same period last year.


The Company announced in May 2022 that it is moving forward with a planned leadership transition plan for the Board and Management.  Michael McCain will serve as the Executive Chair of the Board and will continue as CEO for the next year as part of the management transition plan. Curtis Frank, currently the President and COO, has now assumed the role of CEO.  

Copyright © 2024 Simon M. Shane