Maple Leaf Foods raises EBITDA outlook ahead of pork unit separation

CANADA – Maple Leaf Foods is increasing its full-year adjusted earnings forecast as it prepares to separate its pork division into a new publicly traded company.

The Canadian food manufacturer now expects adjusted EBITDA for 2025 to be between US$497.6M and US$511.6M, compared to its earlier projection of at least US$463.3M.

This revision follows an 8.5% year-on-year rise in group revenue in the second quarter, supported mainly by stronger pork sales.

Revenue for the three months to 30 June reached US$995.2M, while adjusted EBITDA climbed 28.9% to US$132.5M.

President and CEO Curtis Frank said the higher sales and profitability were driven by gains in the pork business and continued growth in its packaged food brands.

Maple Leaf Foods first announced plans to spin off its pork operations in 2024, with the unit set to operate as Canada Packers once the process is completed.

The company confirmed that the transaction remains on track for the second half of this year after receiving shareholder approval in June.

Following the split, Maple Leaf Foods will focus on prepared meats, poultry, and its plant-based brands Field Roast and Lightlife.

The pork division posted a 10.7% revenue increase in the quarter, outpacing the 7.5% rise in prepared foods and the 8.5% gain in poultry sales.

The company’s adjusted EBITDA margin also improved, rising 210 basis points to 13.3%.

Net profit for the quarter stood at US$42.3M, reversing a net loss of US$19.2M recorded a year earlier.

Earnings per share shifted to a profit of 35 US cents from a loss of 15 US cents in the same period in 2024.

Adjusted earnings per share reached 41 US cents, more than tripling year-on-year.

For now, the revised EBITDA forecast includes the pork segment, but the company warned that external factors could influence results.

It cited macroeconomic conditions, market access, supply chain changes, currency fluctuations, and trade barriers as potential risks.

In particular, Maple Leaf Foods pointed to the possibility of tariffs between Canada and the US affecting its performance.

The company said it is monitoring trade developments closely and is prepared to respond quickly to any policy changes that could disrupt its operations.

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