Maple Leaf Foods reports fourth quarter and full year 2024 financial results
Maple Leaf Foods Inc. reported its financial results for the fourth quarter and full year ended December 31, 2024.
In its released financials, Maple Leaf Foods reported that its Adjusted EBITDA grew to $155 million, a 29.0% increase from the fourth quarter of last year, with Adjusted EBITDA Margin increasing from 10.1% to 12.5% for the same period. Sales were $1,237 million for the fourth quarter, compared to $1,186 million for the same period last year, an increase of 4.3%. Sales in Prepared Foods increased 4.6%. Within Prepared Foods, prepared meats and poultry increased by 6.5% and 1.8% respectively. Sales in the Pork operating unit increased by 3.5%.
Earnings for the fourth quarter of 2024 were $54 million ($0.43 per basic share) compared to a loss of $9 million ($0.08 loss per basic share) last year.
For the year 2024, the company reported that the Adjusted EBITDA grew to $553 million, a 29.4% increase compared to last year, with Adjusted EBITDA Margin increasing from 8.8% to 11.3% for the same period. Sales were $4,895 million compared to $4,841 million last year, an increase of 1.1%. Sales in Prepared Foods increased 1.8%. Within Prepared Foods, prepared meats increased by 3.9% which was partially offset by declines in poultry and plant protein of 2.6% and 4.3% respectively. Sales in the Pork operating unit decreased by 0.9%.
READ: Maple Leaf Foods earns $17.7M in Q3, sales rise as it works to spin off pork business
Earnings for 2024 were $97 million ($0.79 per basic share) compared to a loss of $125 million ($1.03 loss per basic share) last year.
"I am incredibly proud of our team's outstanding performance in closing out the year," said Curtis Frank, president and chief executive officer of Maple Leaf Foods. "With our CPG growth strategies proving resilient, our large-scale capital projects now behind us, and pork markets stabilizing at more normal levels, 2024 delivered the significant financial progress we anticipated."
"Free cash flow grew by $296 million in the year, allowing us to rapidly deleverage our balance sheet and improve our Net Debt to Adjusted EBITDA ratio to 2.7x by year-end. All to say we are entering 2025 with strong momentum, setting the stage for a transformational year ahead,” he continued. “As we look to 2025, we have a clear path to drive mid-single-digit sales growth, achieve Adjusted EBITDA that meets or exceeds $634 million, and complete the spin-off of our pork business. More than ever Maple Leaf Foods is positioned for long-term success.”
On July 9, 2024, Maple Leaf Foods announced the planned separation of its pork business as a standalone public company to be called Canada Packers Inc., and work on the separation of the two companies is well underway, the company said. The plan for the initial dividends of Maple Leaf Foods and Canada Packers is anticipated to not be less than Maple Leaf Foods' annual dividend immediately prior to the completion of the spin-off, the company added in its financial report.
