MISSISSAUGA, ON, Maple Leaf Foods Inc. ("Maple Leaf Foods" or "the Company") (TSX: MFI) today reported its financial results for the third quarter ended September 30, 2024, and provided an update on its new tax-free structure for the spin-off of its pork business, to be known as Canada Packers.
"In the third quarter of 2024, we made significant strides in executing our strategic playbook, achieving strong results in a challenging consumer landscape," said Curtis Frank, President and CEO of Maple Leaf Foods. "Our sales increased by 1.8%, driven by over 3% growth in our prepared meats business, while Adjusted EBITDA rose to $141 million.
Mr. Frank continued, "These results reflect our continued investment in our market-leading brands, our leadership in sustainable meats, and alignment with our customers' strategies, as we expanded retail market share and demonstrated growth in our Food Service portfolio. These factors, together with improving pork market conditions and the benefits from our capital projects, fueled a 9.1% year-over-year increase in Adjusted EBITDA.
"With our business performance strengthening, our large-scale capital programs complete, and our disciplined approach to capital management, we generated an increase of $65 million in Free Cash Flow during the quarter. This has accelerated the rapid deleveraging of our balance sheet, achieving a 3.1x Adjusted EBITDA to Net Debt ratio at the end of Q3. Looking forward, we anticipate continued progress in the fourth quarter and remain confident in our 2024 outlook," continued Mr. Frank.
"We continue to be very excited about the benefits of the spin-off of our pork business, and the future of Maple Leaf Foods and Canada Packers as independent, public companies. The prospect of executing the transaction as a tax-free spin-off is a positive development as we continue to advance our strategy to unlock value and unleash the potential of these two unique and distinct businesses," concluded Mr. Frank.
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