Maple Leaf Foods Inc (STU:M1L)
€ 18.7 -0.20 (-1.06%) Market Cap: 2.32 Bil Enterprise Value: 3.41 Bil PE Ratio: 39.38 PB Ratio: 2.36 GF Score: 73/100

Q3 2024 Maple Leaf Foods Inc Earnings Call Transcript

Nov 13, 2024 / 01:00PM GMT
Release Date Price: €14.5 (-4.61%)

Key Points

Positve
  • Maple Leaf Foods Inc (MLFNF) reported a 2% year-over-year increase in Q3 sales, driven by over 3% growth in the CPG prepared meats business.
  • Adjusted EBITDA grew by over 9% to $141 million in the quarter, with a year-to-date growth of nearly 30%.
  • The company achieved a substantial increase in free cash flow generation, contributing to a significant reduction in net debt.
  • Maple Leaf Foods Inc (MLFNF) launched 22 new SKUs in Q3, marking the most items introduced at one time since 2020.
  • The company reported double-digit sales growth in the US market for prepared meats, with over 50% sales growth for its sustainable meats brand, Greenfield.
Negative
  • Higher SG&A expenses year-over-year created a headwind to adjusted EBITDA performance.
  • The inflation-stressed consumer environment negatively impacted the premium portfolio, leading to more trade-down and increased investments to protect market share.
  • The plant protein category, while showing improvement, still faces challenges in achieving profitability.
  • Pork markets, although improving, continue to operate below normal conditions, with a negative market impact of about $14 million in Q3.
  • The spin-off of the pork business is delayed due to the need for a tax ruling, pushing the target closing to mid-2025.
Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Maple Leaf's third-quarter 2024 financial results conference call. As a reminder, this conference call is being broadcast live on the internet and recorded. (Operator Instructions) I would now like to turn the conference call over to Janet Craig, Investor Relations at Maple Leaf Foods.

Please go ahead, Ms. Craig.

Janet Craig
Maple Leaf Foods Inc - Vice President-Investor Relations

Thank you, Jenny, and good morning, everyone. Speaking on the call this morning will be Curtis Frank, President and Chief Executive Officer; Dave Smales, Chief Financial Officer; and Dennis Organ, President, Pork Complex and incoming CEO of Canada Packers. Before I begin, I'd like to remind you that some statements made on today's call may constitute forward-looking information and our future results may differ materially from what we discuss. Please refer to our third quarter 2024 MD&A and other information on our website for a broader description of operations and risk factors that could affect

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