Maple Leaf Foods (MFI) Q4 2024 earnings summary

Executive summary

• Q4 2024 Adjusted EBITDA rose 29% year-over-year to $155 million, with margin expanding to 12.5% from 10.1%; full-year Adjusted EBITDA reached $553 million (11.3% margin), up from $428 million (8.8%) in 2023.

• Q4 sales grew 4.3% year-over-year to $1,237 million; full-year sales up 1.1% to $4,895 million.

• Free Cash Flow for 2024 increased by $296 million to $385 million, supporting rapid deleveraging and investment-grade leverage.

• Announced a tax-free spin-off of the Pork business (Canada Packers), targeted for completion in H2 2025, to unlock value and sharpen strategic focus.

• Completed major capital projects at London Poultry and Bacon Centre of Excellence, both delivering full business case benefits in Q4.

Financial highlights

• Q4 gross profit increased 74.4% to $236.3 million (19.1% margin); full-year gross profit up 72.8% to $780 million.

• Q4 Adjusted EBITDA margin: 12.5% (up 240 bps year-over-year); full-year margin: 11.3% (up 250 bps year-over-year).

• Q4 net earnings were $54 million ($0.43/share) vs. a $9 million loss ($0.08/share) last year; full-year net earnings $97 million, reversing a $125 million loss in 2023.

• Net Debt reduced by $231 million year-over-year to $1,516 million; Net Debt/Adjusted EBITDA improved to 2.7x from 4.1x.

• Capital expenditures for 2024 were $94 million, down from $197 million in 2023.

Outlook and guidance

• 2025 outlook targets mid-single-digit sales growth and Adjusted EBITDA of at least $634 million.

• Strategic target for Adjusted EBITDA margin remains 14%-16%.

• 2025 capital expenditures projected at $175–$200 million, focused on maintenance and efficiency.

• Dividend increased by 9% to $0.96 per share, marking the 10th consecutive annual increase.

• Spin-off of Canada Packers expected to close in the second half of 2025; initial combined dividends post-spin expected to be at least equal to pre-spin levels.