Maple Leaf Foods moves ahead with Canada Packers spin-off plans

CANADA – Maple Leaf Foods Inc. has received interim court approval to hold an annual and special shareholder meeting scheduled for June 11, advancing the proposed spin-off of its pork business into a new company called Canada Packers Inc.

The move follows the company’s earlier announcement of the planned separation, which was first proposed in July 2024, with the Canada Packers name unveiled in October of the same year.

Canada Packers has now released the list of senior leaders expected to head the business once the transaction is finalized.

Dennis Organ, currently president of Maple Leaf’s Pork Complex, is slated to become president and chief executive officer of the new entity.

Deepak Bhandari, who returned to Maple Leaf in 2023 in preparation for the spin-off, is expected to serve as chief financial officer.

Additional appointments include Lance Mistelbacher as senior vice president of commodities and risk management, and Jonathan Sawatzky as senior vice president of hog production and procurement.

The team also includes David Typer as senior vice president of sales and product optimization, Mauricio Alanis as vice president of sustainability, and LeeAnn Peters overseeing food safety, quality assurance, and animal welfare.

Dezi Singh is set to lead human resources as vice president of people.

Once the spin-off is completed, Maple Leaf will continue sourcing certain pork cuts from Canada Packers under a supply agreement to support its prepared foods business.

Latest earnings reflect recovery in pork market

The update on the spin-off comes months after Maple Leaf reported stronger results in the third quarter of fiscal 2024, supported in part by improved pork market dynamics.

For the quarter ending September 30, 2024, the company posted a net income of US$12.6 million (US$0.10 per share), reversing a net loss of US$3.2 million (US$0.03 per share) recorded in the same period the previous year.

Total revenue rose to US$900 million, compared to US$884 million in Q3 2023.

Sales increased by 1.8%, driven largely by a 3% gain in the prepared meats segment, according to president and CEO Curtis Frank.

Adjusted EBITDA reached US$104 million, reflecting a year-over-year increase of 9.1%, while adjusted operating income grew to US$52.6 million from US$50.4 million.

The Prepared Foods division saw a 2% rise in total sales, with plant-based products up 1.1%, although poultry revenue dipped by 0.9%.

Maple Leaf linked the poultry decline to production changes at its London facility and greater internal use of poultry in prepared items, though some of the drop was cushioned by growth in retail volumes.

The pork division posted a 1.1% increase in revenue, attributed to a stronger product mix and currency exchange benefits.