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

Maple Leaf Foods Reports on Q1 FY 2024


In a press release dated May 2nd Maple Leaf Foods Inc. (MFI-TO) announced results for Q1 FY 2024 ended March 31st 2023.


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/ (Loss)1







Diluted earnings per share:




Gross Margin (%)




Operating Margin (%)




Profit Margin (%)




Long-term Debt and lease obligations2:




12 Months Trailing:




           Return on Assets    (%)




           Return on Equity    (%)




           Operating Margin   (%)




           Profit Margin          (%)




Total Assets

 Intangibles and goodwill  as % of assets






Market Capitalization February 22nd.




1.  Restructuring charge: Q1 2023, $5.6 million;

2.  Other expenses: Q1 2024, $0.9 million: Q1 2023, $3.1 million



52-Week Range in Share Price:  $15.71  to  $23.09   50-day Moving average  $17.01

Forward P/E 30.5      Beta  0.5


Insider shareholding 40.0%. Institutional shareholding 25.8%

In commenting on Q4 results Curtis Frank president and CEO stated “In the first quarter of 2024, we delivered Adjusted EBITDA of $116 million, 55% higher than the same period last year. With sales growth within our prepared meats portfolio, and a sequential improvement in our meat protein Adjusted EBITDA margin to 10.8%, and a 310 basis point improvement over last year, we took a meaningful step forward toward delivering our full business potential”.


Frank explained,  “The modest decline we saw in overall sales compared to Q1 2023 was primarily a function of sourcing decisions to reduce outside purchases in poultry and pork, impacting sales in the short term while setting us up to deliver on our plans moving forward.


He concluded, “Looking ahead, we expect the momentum in our business to continue to accelerate. Pork headwinds, while still a challenge, are easing, and our attention is squarely on executing our refreshed Strategic Blueprint,” continued Frank. “With a powerful platform of brands, a network of world-class assets and our leadership in sustainability, we have the right strategy and team in place to drive growth in Canada, accelerate our reach in the U.S. and fully realize the benefits of our recent capital investments.”


The Company provided the following comments on strategy and guidance:-

“The Company has combined its Meat and Plant Protein businesses and aligned its organizational structure to focus on its growth potential in key markets, drive operational efficiencies, and provide clear accountability for strategic execution. Based on this realignment and focus as a protein company, as of the first quarter of 2024, Maple Leaf Foods is reporting its business and operational results as a consolidated protein company, to align with how management monitors and measures business performance. With these changes, the Company believes it is positioned to achieve a consolidated Adjusted EBITDA margin target of 14% to 16% in normal market conditions. Previously, the Company's Adjusted EBITDA margin target of 14% to 16% in normal market conditions was solely for meat protein. The Company achieved an Adjusted EBITDA margin for meat protein of 10.8% in the first quarter of 2024”.


“As a consolidated protein company, Maple Leaf Foods has two operating units: Prepared Foods and Pork, which represent on average approximately 75% and 25% of total Company revenue respectively. Prepared Foods combines the operations of prepared meats, plant protein, and poultry, which represent on average approximately 50%, 5% and 20% of total Company revenue respectively”.


It will no longer be able to evaluate the plant-protein business or to confirm that this previous segment achieved profitability. It appears that Maple Leaf Foods has followed the approach of “if you can’t fix it, bury it”!

Copyright © 2024 Simon M. Shane