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 330 basis points to 13.4%, driven by pork markets, improved mix, and capital project benefits.

• Strategic transformation advanced, including the upcoming spin-off of Canada Packers/Pork operations, with key milestones progressing and completion targeted for H2 2025.

• Dividend increased for the 10th consecutive year to $0.24 per share quarterly, with a compounded annual growth rate of 11.6%.

• Launched successful marketing campaigns and 28 new product innovations, supporting brand resilience and growth.

Financial highlights

• Q1 2025 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 EBITDA rose 43% to $166.3M; margin improved to 13.4% from 10.1% last year.

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

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

• Net debt reduced to $1,554M, with net debt to trailing 12-month adjusted EBITDA at 2.6x, down from 3.7x a year ago.

Outlook and guidance

• On track to deliver 2025 outlook: mid-single-digit revenue growth, adjusted EBITDA of at least $634M, and investment-grade leverage.

• Guidance maintained despite strong Q1, citing prudent approach due to market uncertainties and upcoming pricing actions.

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

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

• Spin-off of Canada Packers/Pork operations expected to unlock shareholder value and sharpen strategic focus.