Maple Leaf Foods (MFI) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 8.2% year-over-year to $1,241.3M, with strong performance across Prepared Foods (+7.1%), Poultry (+6.0%), and Pork (+12.0%).

• Adjusted EBITDA rose 42.9% to $166.3M, with margin expanding to 13.4% from 10.1% last year, driven by improved mix, pork markets, and capital project benefits.

• Net earnings were $49.6M ($0.40 per share), broadly consistent with last year, while Adjusted EPS surged to $0.43 from $0.04.

• Strategic transformation advanced, including the planned spin-off of Canada Packers in H2 2025 and operational improvements under the Maple Leaf Blueprint.

• Dividend increased for the 10th consecutive year to $0.24 per share quarterly, with a normal course issuer bid in place for share repurchases.

Financial highlights

• Q1 sales reached $1,241.3M, up 8.2% year-over-year, with prepared foods, poultry, and pork sales up 7.1%, 6.0%, and 12.0%, respectively.

• Adjusted Operating Earnings rose 80.8% to $95.7M; Adjusted EBITDA margin improved to 13.4% from 10.1% last year.

• Adjusted EPS was $0.43, up from $0.04 in Q1 2024; reported EPS was $0.40.

• Free cash flow for Q1 was an outflow of $13.6M, mainly due to seasonal working capital, with LTM free cash flow at $298M.

• Net debt decreased to $1,554M, with net debt to trailing 12-month Adjusted EBITDA improving to 2.6x from 3.7x a year ago.

Outlook and guidance

• 2025 guidance reiterated: mid-single-digit revenue growth, Adjusted EBITDA of at least $634M, and investment-grade leverage.

• Capital expenditures for 2025 expected at $175–200M, focused on maintenance and efficiency initiatives.

• Guidance maintained despite strong Q1, citing market uncertainties and upcoming pricing actions.

• Spin-off of Canada Packers expected to unlock shareholder value and sharpen strategic focus, with completion targeted for H2 2025.

• Full-year benefits from large capital projects and normalizing pork market conditions expected.