Maple Leaf Foods reports $9.3M Q4 loss compared with $41.5M loss a year earlier

Maple Leaf Foods reports $9.3M Q4 loss compared with $41.5M loss a year earlier

MISSISSAUGA, Ont. — Maple Leaf Foods Inc. is combining its meat and plant protein businesses into one as it seeks to focus the company and drive growth.

As part of the shift, the company announced an organizational shuffle that sees Adam Grogan promoted to the role of chief operating officer, while Casey Richards has been posted to the newly created job of president, Maple Leaf Foods USA.

RBC Dominion Securities analyst Irene Nattel said the change should streamline the company.

It’s a “more accurate reflection of how plant and meat are currently operating, and of the anticipated growth of the segment,” she said in a note.

The reorganization came as Maple Leaf reported Thursday a fourth-quarter loss of $9.3 million or eight cents per share for the quarter ended Dec. 31 compared with a loss of $41.5 million or 34 cents per share a year earlier.

The company said the improvement for the quarter was driven by pricing to mitigate inflation, stronger pork markets, and other factors.

Sales totalled $1.19 billion for the quarter, about the same as a year earlier.

Sales for the company’s meat protein business amounted to $1.16 billion, up from $1.15 billion in the fourth quarter of 2022, while plant protein sales totalled $36.5 million, down from $40.0 million a year earlier.

Maple Leaf CEO Curtis Frank said results for the meat protein business fell below expectations due to continuing challenges in the global pork market as well as “a challenging consumer demand environment.”

However, the company achieved the goal it had set for its plant protein business in 2023: for adjusted earnings before interest, taxes, depreciation and amortization to be neutral or better.

On an adjusted basis, Maple Leaf says it earned eight cents per share in its latest quarter compared with an adjusted loss of 28 cents per share in the fourth quarter of 2022.

Maple Leaf’s loss for the full financial year also narrowed, coming in at $125 million compared with $311.9 million in 2022.

The company also has a new chief financial officer as of the end of January. David Smales took on the role after Geert Verellen decided to step down.

Maple Leaf said it expects low- to mid-single digit revenue growth in 2024, with an expanded EBITDA margin supported in part by growth, return on capital investments, and profitable growth in plant protein.

This report by The Canadian Press was first published Feb. 22, 2024.

Companies in this story: (TSX:MFI)

The Canadian Press

Note to readers: This is a corrected story. An earlier version reported an incorrect number for meat protein sales.