Maple Leaf Foods increases profit forecast ahead of pork division spin-off

CANADA – Maple Leaf Foods has raised its full-year earnings forecast as it prepares to separate its pork business into a new publicly listed company.

The Canadian food manufacturer now expects adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) for 2025 to be between US$501.5 million and US$516 million, compared to its earlier projection of at least US$467 million.

This comes after the company reported an 8.5% year-on-year increase in second-quarter group revenue, supported by higher pork sales, which rose 10.7% in the period.

Prepared foods and poultry sales also grew, by 7.5% and 8.5% respectively, contributing to overall revenue of US$1 billion for the three months to June 30.

Adjusted EBITDA for the quarter reached US$132.5 million, a 28.9% improvement from the same period last year, while the related margin climbed 210 basis points to 13.3%.

The company’s net income turned positive at US$42.6 million, reversing a net loss of US$19.3 million in the prior year.

Earnings per share stood at 35 US cents compared to a 16 US cent loss last year, while adjusted EPS increased to 41 US cents from 13 US cents.

Pork division separation remains on schedule

The planned spin-off, first announced in 2024, will see Maple Leaf Foods’ pork operations form a separate entity named Canada Packers.

Shareholders approved the move in June, and the transaction remains slated for completion in the second half of this year.

Once the separation is finalized, Maple Leaf Foods will focus on two core segments: prepared foods, which includes other meat categories and plant-based brands such as Field Roast and Lightlife, and poultry.

Chief executive Curtis Frank said the company’s performance in the first half of the year reflects stronger profitability in pork and steady growth in consumer packaged goods.

However, the company noted that the updated earnings outlook still factors in the pork business for now.

It also cautioned that external conditions, including tariffs between Canada and the United States, currency fluctuations, and broader economic factors, could affect its ability to meet the 2025 forecast.

Maple Leaf Foods said it is monitoring trade policy developments closely to respond to any changes that could impact market access or supply chains.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.