Q3 2024 Maple Leaf Foods Inc Earnings Call Transcript
Key Points
- 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.
- 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.
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.
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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