Maple Leaf Foods, a leading Canadian protein company, has set the stage for a significant year ahead, with a strategic plan that combines growth, cost reduction, and a transformative spin-off. The company's recently approved 2025 operating plan highlights several key initiatives that are expected to drive mid-single-digit revenue growth, significant year-over-year Adjusted EBITDA improvements, continued balance sheet de-leveraging, and the completion of the spin-out of Canada Packers.

One of the primary growth strategies for Maple Leaf Foods is capitalizing on the growing consumer demand for protein. The company's singular portfolio focus and leadership in sustainable meats position it well to meet this rising demand. Additionally, the company plans to strategically increase marketing and advertising investments behind its portfolio of leading protein brands, each with a clear brand strategy addressing specific consumer demand spaces. This approach is expected to optimize volume and mix, contributing to the company's mid-single-digit revenue growth in 2025.

Maple Leaf Foods also aims to accelerate the pace of consumer-focused innovation, with a view to outpacing the over 50 new SKUs introduced in 2024. This strategy is expected to drive growth and meet the evolving needs of consumers. Furthermore, the company plans to expand its geographic reach in the US market by building on its existing protein platform and new organizational structure. Building on strategic relationships with customers through joint business planning is another key growth strategy for the company.



The company expects another year of continued improvement in Adjusted EBITDA performance, with its 2025 operating plan expected to deliver Adjusted EBITDA that will meet or exceed current analyst consensus estimates of $634 million. Key drivers of the Company's Adjusted EBITDA growth include:

1. The full year of benefits attached to three key large capital projects: London Poultry, the Winnipeg Bacon Centre of Excellence, and the Walker Road Further Processed Poultry expansion. These projects are expected to deliver their business case at a run-rate by the end of 2024, contributing to Adjusted EBITDA growth in 2025.
2. Being responsive to the improving consumer environment, supported by brand and revenue management plans to optimize volume and mix.
3. A full year of benefits from a return to more normal levels of profitability in the pork complex, which are now materializing.
4. The announcement of Maple Leaf's new Fuel for Growth initiative, which accelerates the company's cost reduction focus and competitive edge by optimizing resources and processes, investing in automation technology where appropriate, and leaning out the organizational structure to improve execution.
5. Supply chain optimization, with a sourcing optimization initiative completed by the end of 2024, delivering enhanced savings, scalability, and supply chain agility in 2025.
6. SG&A improvements, with the successful implementation of the initial phase of SG&A reductions through the restructuring of commercial and operations teams at the end of 2024, resulting in a leaner organizational structure and reduced headcount. Combined with right-sizing SG&A investments in the plant protein category, these measures are expected to deliver significant SG&A savings in 2025.
7. A strategic review of the manufacturing and operating network to boost capacity utilization, rationalize its footprint where necessary, adopt advanced technologies, and further optimize performance.

The completion of the spin-out of Canada Packers is expected to have a significant impact on Maple Leaf Foods' performance and shareholder value. The spin-out will create two independent public companies, each with its own dedicated management team and financial independence. This will allow each company to pursue its own value creation strategies and focus on its respective markets. Maple Leaf Foods will be able to concentrate on its core protein business, while the new Pork Company will have the agility to respond to the unique dynamics of the pork market. This focused approach is expected to lead to improved operational efficiency and better decision-making.

In conclusion, Maple Leaf Foods has laid the groundwork for a transformative year ahead, with a strategic plan that combines growth, cost reduction, and a transformative spin-off. The company's growth strategies, Adjusted EBITDA growth drivers, and the expected impact of the spin-out of Canada Packers position it well to deliver on its 2025 operating plan and create shareholder value. As an investor, keeping an eye on Maple Leaf Foods' progress throughout the year will be essential to capitalize on the opportunities that lie ahead.