Maple Leaf Foods (MFI) 28th Annual CIBC Western Institutional Investor Conference summary

2024 performance and 2025 outlook

• Achieved significant progress in 2024, with improved Adjusted EBITDA, profitability, and free cash flow, and reduced capital investment and leverage.

• 2025 guidance includes mid-single-digit revenue growth and Adjusted EBITDA around CAD 634 million, aligning with analyst consensus.

• Plans for the 10th consecutive annual dividend increase and maintaining leverage at 2–3x investment grade levels.

• Intends to be more active on the NCIB in the future, with timing constraints in the short term.

• Spinout of Canada Packers expected to close in 2025, with clear guidance on timing and leverage targets.

Revenue growth drivers and market conditions

• Revenue growth expected from both volume and inflation, supported by resilient growth strategies and strong brands.

• U.S. business, now about 9% of sales, offers significant expansion potential through more product listings and innovation.

• Consumer behavior is normalizing, with sustainable meats and poultry showing renewed demand.

• Adjustments in promotional spend and pricing have been made to support volume and mix, especially in premium and sustainable meats.

• Cost management initiatives are underway, with a focus on consumer-facing actions and some production-side efficiencies.

Capital projects and operational improvements

• Major capital projects in London and Winnipeg are delivering expected contributions, with full-year benefits anticipated in 2025.

• Additional investment in the Walker Drive facility supports foodservice growth and value-added poultry products.

• Strategic manufacturing review, branded as Fuel for Growth, targets SG&A optimization, supply chain efficiencies, and manufacturing footprint rationalization.

• Closure of the Brantford facility will boost efficiency and reduce overhead, with production shifted to other sites.

• SG&A reductions and other cost initiatives are expected to contribute to 2025 results, though their impact is secondary to commodity and capital project gains.