TSX: MFI
Maple Leaf Foods delivers Adjusted EBITDA of $129 million at a margin of 12.5%, Earnings of $22 million
MISSISSAUGA, ON, Nov. 4, 2026 /PRNewswire/ -- Maple Leaf Foods Inc. ("Maple Leaf Foods" or "the Company") (TSX: MFI) today reported its financial results for the third quarter ended September 30, 2026.
Third Quarter 2026 Highlights
- Sales were $1,035 million compared to $1,011 million for the same period last year, an increase of 2.4%.
- Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA")(i) grew to $129 million, a 15.4% increase from the same period last year, with Adjusted EBITDA Margin increasing by 140 basis points to 12.5%.
- Earnings before taxes were $36 million compared to $35 million for the same period last year.
- Earnings from continuing operations were $22 million ($0.18 basic earnings per share) compared to $23 million ($0.19 basic earnings per share) for the same period last year.
- Adjusted Basic Earnings per Share(i) was $0.36 for the quarter compared to $0.21 for the same period last year.
- Year to date returned $119 million in capital to shareholders through dividends and shares repurchased under the Normal Course Issuer Bid.
- Reaffirms outlook for mid-single-digit revenue growth in fiscal 2026, commitment to maintaining an investment-grade balance sheet(ii), and dividend growth of approximately 10%, updates Adjusted EBITDA to around the bottom of the Company's previous 2026 outlook of $520 million - $540 million and capital expenditure outlook to $130 - $150 million.
- Reaffirms 2030 targets of approximately $5 billion in Revenue, approximately $750 million in Adjusted EBITDA, and cumulative Free Cash Flow of $1.7 to $1.8 billion, while maintaining an investment-grade balance sheet with leverage(ii) below 3.0x.
Executive Commentary
"Our third-quarter results reflect disciplined execution of our strategy. We delivered our eighth consecutive quarter of year-over-year revenue growth. Sales increased 2.4%, Adjusted EBITDA grew 15.4% to $129 million, and Adjusted EBITDA margin expanded 140 basis points to 12.5%," said Curtis Frank, President and Chief Executive Officer of Maple Leaf Foods. "Branded sales and volume growth in Prepared Foods were strong, and a favourable sales mix and cost management improved profitability. We generated $175 million in free cash flow, further strengthening our balance sheet and giving us significant financial flexibility."
"We entered 2026 expecting a relatively stable external environment. That has not been the case. Renewed inflation in food production worldwide has raised costs and pressured consumers, particularly in the second half," continued Mr. Frank. "We began the year expecting Adjusted EBITDA of approximately $520 million to $540 million. While we continue to expect revenue and profit growth over last year in the fourth quarter, increased pressure on consumers and more persistent cost inflation mean we now expect full-year Adjusted EBITDA to be around the bottom of that range, given the normal time lag in mitigating inflation. Growing revenue and profit in this environment reflects the resilience of our business and the strength of our execution, and it reinforces our confidence in our strategic blueprint and our ability to achieve our 2030 financial targets."
(i) Refer to the section titled Non-IFRS Financial Measures in this news release for the definition of these non-IFRS measures and ratios as well as a
reconciliation to the relevant IFRS financial measure.
(ii)
Maple Leaf Foods defines investment grade leverage as typically operating below 3.0x Net Debt to Trailing Twelve Months Adjusted EBITDA.
Financial and Operating Highlights
Maple Leaf Foods consists of two operating units; Prepared Foods and Poultry. As a final move in the previously announced re-organization of the Company's commercial and supply chain operations, the Poultry operating unit now includes both the fresh and further processed poultry categories. The Poultry operating unit represents approximately 40% of sales, and the Prepared Foods operating unit represents approximately 60% of sales.
As at or for the As at or for the
($ millions except earnings per share) three months ended September 30, nine months ended September 30,
(Unaudited)
2026 2025 Change 2026 2025 Change
Sales $1,034.7 $1,010.5 2.4 % $3,017.7 $2,921.4 3.3 %
Gross profit $175.8 $162.8 8.0 % $548.4 $504.4 8.7 %
Selling, general and administrative expenses $96.0 $101.5 (5.4) % $302.3 $304.2 (0.6) %
Earnings Before Income Taxes $36.4 $35.0 4.1 % $158.4 $113.4 39.7 %
Earnings from Continuing Operations $22.3 $23.3 (4.3) % $109.2 $78.4 39.4 %
Earnings $22.3 $43.1 (48.1) % $109.2 $150.4 (27.4) %
Basic Earnings per Share from Continuing Operations $0.18 $0.19 (5.3) % $0.88 $0.63 39.7 %
Basic Earnings per Share $0.18 $0.35 (48.6) % $0.88 $1.21 (27.3) %
Adjusted Operating Earnings(i) $80.8 $62.4 29.5 % $249.8 $203.1 23.0 %
Adjusted EBITDA(i) $128.9 $111.7 15.4 % $388.4 $358.4 8.4 %
Adjusted EBITDA Margin(i) 12.5 % 11.1 % 140 bps 12.9 % 12.3 % 60 bps
Adjusted EBT(i) $62.8 $40.0 57.2 % $197.2 $135.0 46.1 %
Adjusted Basic Earnings per Share(i) $0.36 $0.21 71.4 % $1.13 $0.77 46.8 %
nm
Cash Provided by Operating Activities $200.2 $72.4 (ii) $259.6 $321.9 (19.3) %
nm
Free Cash Flow(i) $174.9 $46.2 (ii) $192.6 $248.6 (22.5) %
Net Debt(i) $940.3 $1,354.9 (30.6) %
Net Debt to Trailing Twelve Months Adjusted EBITDA(i) 1.9 2.0 (0.1)
(i) Refer to the section titled Non-IFRS Financial Measures in this news release for the definition
of these non-IFRS measures and ratios as well
as a reconciliation to the relevant IFRS financial measure.
(ii)
Not meaningful.
Sales for the third quarter of 2026 were $1,034.7 million compared to $1,010.5 million last year, an increase of 2.4%. Poultry sales increased by 4.3% driven by improved channel mix and pricing. These factors were partially offset by the impact of lower industrial channel volumes which more than offset volume growth in the foodservice and retail channels. Prepared Foods sales increased by 1.3% driven by improved product mix and related party revenue, which were partially offset by the impact of lower volume and increased trade promotion spending.
Year-to-date sales for 2026 were $3,017.7 million compared to $2,921.4 million last year, an increase of 3.3%. Poultry sales increased by 7.6% driven by improved channel mix, growth in retail and foodservice volumes, and pricing, which were partially offset by increased trade promotion spending. Sales for Prepared Foods increased by 0.4% driven by pricing, related party revenue, and improved sales mix. These factors were partially offset by the impact of lower volume and increased trade promotion spending.
Gross profit for the third quarter of 2026 increased to $175.8 million (gross margin(i) of 17.0%) compared to $162.8 million (gross margin(i) of 16.1%) last year. The increase in gross profit was driven by favourable mix in Poultry and Prepared Foods, and improved operating efficiency.
Year-to-date gross profit for 2026 increased to $548.4 million (gross margin(i) of 18.2%) compared to $504.4 million (gross margin(i) of 17.3%) last year. The increase in gross profit was driven by improved operating efficiency and favourable mix, with pricing offset by higher input cost inflation. These factors were partially offset by the impact of lower volume.
Selling, general and administrative ("SG&A") expenses for the third quarter of 2026 were $96.0 million compared to $101.5 million last year. The decrease was driven by lower variable compensation and timing of advertising and promotional expenses.
Year-to-date SG&A expenses for 2026 were $302.3 million compared to $304.2 million last year. The decrease was driven by lower variable compensation and lower amortization, partially offset by higher consulting fees and inflation.
Earnings before income taxes for the third quarter of 2026 were $36.4 million compared to $35.0 million last year. The increase was driven by the same factors as noted above for gross profit and SG&A, partially offset by higher restructuring costs.
Year-to-date earnings before income taxes for 2026 were $158.4 million compared to $113.4 million last year. The increase was driven by the same factors as noted above for gross profit and SG&A, as well as reduced interest expense due to lower debt levels as a result of the spin-off of the pork operations in the fourth quarter of 2025 and lower interest rates, partly offset by higher gains on long-term asset disposals in the prior year and higher current year restructuring costs.
Earnings from continuing operations for the third quarter of 2026 were $22.3 million ($0.18 basic earnings per share from continuing operations) compared to $23.3 million ($0.19 basic earnings per share from continuing operations) last year. Earnings from continuing operations were impacted by the same factors as noted above for earnings before tax, as well as an increase in income tax expense due to the increase in earnings before income taxes.
Year-to-date earnings from continuing operations for 2026 were $109.2 million ($0.88 basic earnings per share from continuing operations) compared to $78.4 million ($0.63 basic earnings per share from continuing operations) last year. Earnings from continuing operations were impacted by the same factors as noted above for earnings before tax, as well as an increase in income tax expense due to the increase in earnings before income taxes.
Earnings for the third quarter of 2026 were $22.3 million ($0.18 basic earnings per share) compared to $43.1 million ($0.35 basic earnings per share) last year. The decrease was driven by the forgone earnings from the divested pork operations.
Year-to-date earnings for 2026 were $109.2 million ($0.88 basic earnings per share) compared to $150.4 million ($1.21 basic earnings per share) last year. The decrease was driven by the forgone earnings from the divested pork operations offset by higher earnings from continuing operations driven by the factors noted above.
Adjusted Operating Earnings(ii) for the third quarter of 2026 were $80.8 million compared to $62.4 million last year, and Adjusted Basic Earnings per Share(ii) for the third quarter of 2026 was $0.36 compared to $0.21 last year. The increase was driven by factors consistent with those noted above for gross profit and SG&A, excluding the impact of unrealized gains and losses on commodity futures contracts.
Year-to-date Adjusted Operating Earnings(ii) for 2026 were $249.8 million compared to $203.1 million last year, and Adjusted Basic Earnings per Share(ii) was $1.13 compared to $0.77 last year. The increase was driven by factors consistent with those noted above for gross profit and SG&A, excluding the impact of unrealized gains and losses on commodity futures contracts.
Adjusted EBITDA(ii) for the third quarter of 2026 was $128.9 million compared to $111.7 million last year, driven by factors consistent with those noted above for gross profit and SG&A, excluding the impact of unrealized gains and losses on commodity futures contracts. Adjusted EBITDA Margin was 12.5% compared to 11.1% last year, also driven by factors consistent with those noted above.
Year-to-date Adjusted EBITDA(ii) for 2026 was $388.4 million compared to $358.4 million last year, driven by factors consistent with those noted above for gross profit and SG&A, excluding the impact of unrealized gains and losses on commodity futures contracts, partly offset by higher other expense, largely as a result of higher gains on long-term asset disposals in the prior year. Adjusted EBITDA Margin was 12.9% compared to 12.3% last year, also driven by factors consistent with those noted above.
Adjusted Earnings Before Taxes ("Adjusted EBT")(ii) for the third quarter of 2026 was $62.8 million compared to $40.0 million last year, due to similar factors as noted above for Adjusted EBITDA, along with a reduction in interest expense.
Year-to-date Adjusted EBT(ii) for 2026 was $197.2 million compared to $135.0 million last year, due to similar factors as noted above for Adjusted EBITDA, along with a reduction in interest expense.
Cash provided by operating activities for the third quarter of 2026 was $200.2 million compared to $72.4 million last year. For discussion of changes in cash provided by operating activities see section 7. Cash Flow and Financing of the Company's Management's Discussion and Analysis for the quarter ended September 30, 2026 as filed on SEDAR+.
Year-to-date cash provided by operating activities for 2026 was $259.6 million compared to $321.9 million last year. For discussion of changes in cash provided by operating activities see section 7. Cash Flow and Financing of the Company's Management's Discussion and Analysis for the quarter ended September 30, 2026 as filed on SEDAR+.
Free Cash Flow(ii) for the third quarter of 2026 was an inflow of $174.9 million compared to an inflow of $46.2 million in the prior year. Removing the impacts of discontinued operations which contributed $28.5 million of Free Cash inflow in the prior year, Free Cash Flow increased largely as a result of timing of investment in working capital as well as $35.0 million of incremental receivables sold under the expanded accounts receivable securitization program, partially offset by higher income tax payments and maintenance capital expenditures.
Year-to-date Free Cash Flow(ii) for 2026 was an inflow of $192.6 million compared to an inflow of $248.6 million in the prior year. Removing the impacts of discontinued operations which contributed $125.9 million of Free Cash inflow in the prior year, Free Cash Flow increased largely as a result of timing of investment in working capital compared to the prior year as well as $35.0 million of incremental receivables sold under the expanded accounts receivable securitization program, increased earnings net of non-cash items and lower interest payments, partially offset by higher income tax payments and maintenance capital expenditures.
Net Debt(ii) as at September 30, 2026 was $940.3 million, a decrease of $414.6 million compared to the prior year. Net Debt to Trailing Twelve Months Adjusted EBITDA decreased by 0.1x. For discussion of changes in Net Debt see section 7. Cash Flow and Financing of the Company's Management's Discussion and Analysis for the quarter ended September 30, 2026 as filed on SEDAR+.
(i)
Gross margin is defined as gross profit divided by sales.
(ii) Refer to the section titled Non-IFRS Financial Measures in this news release for the definition
of these non-IFRS measures and ratios as well
as a reconciliation to the relevant IFRS financial measure.
Other Matters
On November 3, 2026, the Board of Directors approved a quarterly dividend of $0.21 per share, $0.84 per share on an annual basis, payable December 31, 2026 to shareholders of record at the close of business December 17, 2026. Unless indicated otherwise by the Company at or before the time the dividend is paid, the dividend will be considered an eligible dividend for the purposes of the "Enhanced Dividend Tax Credit System". The Company's Dividend Reinvestment Plan ("DRIP") permits eligible shareholders to direct their cash dividends to be reinvested in additional common shares of the Company. For those who wish to reinvest their dividends under the DRIP, Maple Leaf Foods intends to issue common shares from treasury at a price equal to 100% of the weighted average closing price of the shares for the five trading days preceding the dividend payment date. Full details of the DRIP, including how to enroll in the program, are available at https://www.mapleleaffoods.com.
Conference Call
A conference call will be held at 8:00 a.m. ET on November 4, 2026, to review Maple Leaf Foods' third quarter financial results. To participate in the call, please dial 1-416-945-7677 or 1-888-699-1199. For those unable to participate, a playback will be made available an hour after the event at 1-289-819-1450 or 1-888-660-6345 (Passcode: 63604#).
A webcast of the third quarter conference call will also be available at: https://app.webinar.net/A7EVqR8jl1k.
The Company's full unaudited interim condensed consolidated financial statements ("Consolidated Interim Financial Statements") and related Management's Discussion and Analysis are available on the Company's website and on SEDAR+ at www.sedarplus.ca.
An investor presentation related to the Company's third quarter financial results will be available at www.mapleleaffoods.com/investors.
Non-IFRS Financial Measures
The Company uses the following non-IFRS measures and ratios: Adjusted Operating Earnings, Adjusted Earnings, Adjusted Basic Earnings per Share, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBT, Construction Capital, Net Debt, Net Debt to Trailing Twelve Months Adjusted EBITDA and Free Cash Flow. Management believes that these non-IFRS measures provide useful information to investors in measuring the financial performance of the Company for the reasons outlined below. These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS.
Adjusted Operating Earnings, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBT
Adjusted Operating Earnings, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBT are non-IFRS measures and ratios used by Management to evaluate financial operating results. Adjusted Operating Earnings is defined as earnings before other income, interest expense and income taxes adjusted for items that are not considered representative of ongoing operational activities of the business and certain items where the economic impact of the transactions will be reflected in earnings in future periods when the underlying asset is sold or transferred. Adjusted EBITDA is defined as Adjusted Operating Earnings plus depreciation and intangible asset amortization, plus items included in other expense that are considered representative of ongoing operational activities of the business. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by sales. Adjusted EBT is used annually by the Company to evaluate its performance and is a component of calculating bonus entitlements under the Company's short term incentive plan. It is defined as Adjusted EBITDA plus interest income, less depreciation and amortization, and interest expense and other financing costs.
The table below provides a reconciliation of earnings before income taxes as reported under IFRS in the Consolidated Interim Financial Statements to Adjusted Operating Earnings, Adjusted EBITDA and Adjusted EBT for the three and nine months ended September 30, 2026, as indicated below. Management believes that these non-IFRS measures are useful in assessing the performance of the Company's ongoing operations and its ability to generate cash flows to fund its requirements.
Three months ended September Nine Months ended September
30, 30,
($ millions)
(i) 2026 2025 2026 2025
(Unaudited)
Earnings before income taxes $36.4 $35.0 $158.4 $113.4
Interest expense and other financing costs 20.0 24.0 53.4 77.6
Other expense 2.5 0.3 8.0 3.0
Restructuring and other related costs 13.6 2.0 15.7 6.2
Share of (earnings) loss of associate 7.3 10.5
Earnings from operations $79.8 $61.3 $246.1 $200.2
Start-up expenses from Construction Capital(ii) 0.7 2.9
Decrease (increase) in derivative contracts 1.0 0.4 3.7
Adjusted Operating Earnings $80.8 $62.4 $249.8 $203.1
Depreciation and amortization(iii) 47.4 48.6 140.5 147.9
Items included in other income (expense) representative of ongoing operations(iv) 0.8 0.7 (1.9) 7.4
Adjusted EBITDA $128.9 $111.7 $388.4 $358.4
Adjusted EBITDA Margin 12.5 % 11.1 % 12.9 % 12.3 %
Interest expense and other financing costs (20.0) (24.0) (53.4) (77.6)
Interest income 1.2 0.8 2.8 2.1
Depreciation and amortization (47.4) (48.6) (140.5) (147.9)
Adjusted EBT $62.8 $40.0 $197.2 $135.0
(i)
Totals may not add due to rounding.
(ii) Start-up expenses are temporary costs as a result of operating new facilities that are or were previously classified as Construction Capital. These costs can include training, product testing, yield and
labour efficiency variances, duplicative overheads including depreciation and other temporary expenses required to ramp-up production.
(iii)
Depreciation included in start-up expenses and restructuring and other related costs is excluded from this line.
(iv) Primarily includes certain costs associated with sustainability projects, gains and losses on the impairment and sale of long-term assets, and the cost recovery of information services and other
miscellaneous expenses.
Adjusted Earnings and Adjusted Basic Earnings per Share
Adjusted Earnings and Adjusted Basic Earnings per Share are non-IFRS measures used by Management to evaluate financial operating results. These measures are defined as earnings and basic earnings per share adjusted on the same basis as Adjusted Operating Earnings, plus items in other income that are representative of ongoing operations, all tax affected. The table below provides a reconciliation of earnings and basic earnings per share as reported under IFRS in the Consolidated Interim Financial Statements to Adjusted Earnings and Adjusted Basic Earnings per Share for the three and nine months ended September 30, 2026, as indicated below. Management believes this basis is the most appropriate on which to evaluate financial results as they are representative of the ongoing operations of the Company.
(Unaudited)
(i) Three months ended September 30, Three months ended September 30,
2026 2025
$ thousands per share
$ thousands per share
Earnings from continuing operations $22,327 $0.18 $23,337 $0.19
Restructuring and other related costs(ii) 12,016 0.10 1,449 0.01
Items included in other expense not considered representative of ongoing operations(iii) 3,427 0.03 1,189 0.01
Start-up expenses from Construction Capital(iv) 535
Change in unrealized fair value on derivative contracts 721 0.01 240
Share of (earnings) loss of associate 6,415 0.05
Adjusted Earnings $44,906 $0.36 $26,750 $0.21
(Unaudited)
(i) Nine months ended September 30, Nine months ended September 30,
2026 2025
$ thousands per share
$ thousands per share
Earnings from continuing operations $109,193 $0.88 $78,356 $0.63
Restructuring and other related costs(ii) 13,562 0.11 4,620 0.04
Items included in other expense not considered representative of ongoing operations(iii) 6,730 0.05 9,808 0.08
Start-up expenses from Construction Capital(iv) 2,163 0.02
Change in unrealized fair value on derivative contracts 2,795 0.02 (60)
Share of (earnings) loss of associate 8,591 0.07
Adjusted Earnings $140,871 $1.13 $94,887 $0.77
(i)
Totals may not add due to rounding.
(ii)
Includes impact of restructuring and other related costs, net of tax.
(iii)
Primarily includes vacancy costs on investment property, spin-off transaction related costs and costs associated with "Fuel for Growth", net of tax
(iv) Start-up expenses are temporary costs as a result of operating new facilities that are or were previously classified as Construction Capital. These costs can include training, product testing, yield and
labour efficiency variances, duplicative overheads and other temporary expenses required to ramp-up production, net of tax.
Net Debt
The following table reconciles Net Debt and Net Debt to Trailing Twelve Months Adjusted EBITDA ratio to amounts reported under IFRS in the Company's Consolidated Interim Financial Statements as at September 30, as indicated below. The Company calculates Net Debt as cash and cash equivalents, less current and long-term debt and bank indebtedness and calculates Net Debt to Trailing Twelve Months Adjusted EBITDA as the absolute value of Net Debt divided by Trailing Twelve Months Adjusted EBITDA. Management believes this measure is useful in assessing the amount of financial leverage employed.
($ thousands) As at September 30,
(Unaudited)
2026 2025
Cash and cash equivalents $196,789 $187,472
Current portion of long-term debt $(1,791) $(351,863)
Long-term debt (1,135,296) (1,190,486)
Total debt $(1,137,087) $(1,542,349)
Net Debt $(940,298) $(1,354,877)
Trailing twelve months Adjusted EBITDA
(i) $505,725 $674,415
Net Debt to Trailing Twelve Months Adjusted EBITDA 1.9 2.0
(i) Trailing Twelve Months for 2026 includes Q3 2026, Q2 2026, Q1 2026 and Q4 2025. 2025 includes Q3 2025 Total Company and Q2 2025, Q1 2025 and Q4 2024 and is presented as originally stated. Total Company
Adjusted EBITDA includes the pork operations as if they had been consolidated.
Free Cash Flow
Free Cash Flow, a non-IFRS measure, is used by Management to evaluate cash flow after investing in the maintenance of the Company's asset base. It is defined as cash provided by operations, less Maintenance Capital(i) and associated interest paid and capitalized. The following table calculates Free Cash Flow for the periods indicated below:
($ thousands) Three months ended September Nine months ended September
30, 30,
(Unaudited)
2026 2025 2026 2025
Cash provided by operating activities $200,227 $72,380 $259,626 $321,850
Maintenance Capital(i) (24,892) (26,091) (65,672) (72,607)
Interest paid and capitalized related to Maintenance Capital (452) (127) (1,325) (682)
Free Cash Flow $174,883 $46,162 $192,629 $248,561
(i) Maintenance Capital is defined as non-discretionary investment required to maintain the Company's existing operations and competitive position. For the three and nine months ended September 30, 2026,
total capital spending of $29.9 million and $73.6 million (2025: $27.6 million and $76.9 million) shown on the Consolidated Interim Statements of Cash Flows is made up of Maintenance Capital of $24.9
million and $65.7 million (2025: $26.1 million and $72.6 million), and Growth Capital of $5.0 million and $7.9 million (2025:$1.5 million and $4.3 million). Growth Capital is defined as discretionary
investment meant to create stakeholder value through initiatives that for example, expand margins, increase capacities or create further competitive advantage.
Forward-Looking Statements
This document contains, and the Company's oral and written public communications often contain, "forward-looking information" within the meaning of applicable securities law. These statements are based on current expectations, estimates, projections, beliefs, judgments and assumptions based on information available at the time the applicable forward-looking statement was made and in light of the Company's experience combined with its perception of historical trends. Such statements include, but are not limited to, statements with respect to objectives and goals, in addition to statements with respect to beliefs, plans, targets, goals, objectives, expectations, anticipations, estimates, and intentions. Often, but not always, forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "could", "would", "believe", "plan", "intend", "design", "target", "undertake", "view", "indicate", "maintain", "explore", "entail", "schedule", "objective", "strategy", "likely", "potential", "outlook", "aim", "propose", "goal", or positive or negative variations of such words and similar expressions suggesting future events or future performance. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes the expectations reflected in the forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct.
Specific forward-looking information in this document may include, but is not limited to, statements with respect to:
- expected operational and financial performance of the Company's business in Poultry and Prepared Foods following the spin-off of its pork operations (the "Spin-Off'), including the post separation business structure, processes and dynamics, the operationalization of the transaction agreements entered into between the Company and Canada Packers Inc. ("Canada Packers");
- the degree of dependence on Canada Packers as its primary supplier of pork for its Prepared Foods operations;
- the Company's ability to realize the anticipated benefits and efficiencies from the Spin-Off;
- the Company's ability to manage increased business concentration and reduced diversification;
- the timing and impact of operational restructuring and cost-reduction initiatives;
- the Company's ability to pursue a disciplined, investor focused approach to capital allocation while driving mid-single digit revenue growth and continued Adjusted EBITDA margin expansion;
- the Company's revised fiscal 2026 outlook, including its expected outlook for revenue, Adjusted EBITDA, the Company's balance sheet, Net Debt to Trailing Twelve Months Adjusted EBITDA, capital investments and dividend growth and the anticipated drivers thereof;
- the Company's 2030 financial targets, including its expected outlook for revenue, Adjusted EBITDA, free cash flow, the Company's balance sheet and shareholder returns;
- future performance, including future financial objectives, goals and targets, category growth analysis, expected capital spend and expected SG&A expenditures, labour markets, and inflationary pressures (including the Company's ability to price for inflation);
- the execution of the Company's business strategy, including the development and expected timing of business initiatives, brand expansion and repositioning, innovation, category performance, capital allocation decisions (including investment in share repurchases under a NCIB or other returns of capital) and investment in growth opportunities and the expected returns associated therewith;
- competitive conditions and the Company's ability to position itself competitively in the markets in which it competes;
- potential capital projects, including planning, construction, estimated expenditures, schedules, approvals, and the anticipated benefits thereof; and
- the Company's dividend policy, including future levels and sustainability of cash dividends, the tax treatment thereof and future dividend payment dates.
Various factors or assumptions are typically applied by the Company in drawing conclusions or making the forecasts, projections, predictions or estimations set out in the forward-looking statements. These factors and assumptions are based on information currently available to the Company, including information obtained by the Company from third-party sources and include but are not limited to the following:
- the benefits and impacts of the Spin-Off being realized, including the projected risks, costs, dis-synergies, and tax consequences;
- compliance by Maple Leaf Foods, Canada Packers and "specified shareholders", as defined in the Income Tax Act (''ITA"), with the rules related to butterfly transactions under the ITA both before and after the completion of the Spin-Off;
- the ability of Canada Packers to meet the Company's demand for pork for its Prepared Foods operations, including pork that meets the Company's sustainability requirements and claims;
- expectations regarding the adaptations in operations, supply chain, customer and consumer behaviour, economic patterns, foreign exchange rates, tariffs and other international trade dynamics, access to capital, and potential structural changes in global economic patterns;
- the competitive environment, associated market conditions (including tariffs) and market share metrics, category growth or contraction, the expected behaviour of competitors and customers and trends in consumer preferences;
- the success of the Company's business strategy and the relationship between pricing, inflation, volume and sales of the Company's products;
- prevailing commodity prices, implications of tariffs, interest rates, tax rates and exchange rates;
- geopolitical conditions and the ability of the Company to access markets and source ingredients and other inputs in light of global sociopolitical disruption, and the ongoing impact of global conflicts on inflation, trade and markets;
- the extent of potential outbreaks and/or spread of animal disease and implications for all protein markets;
- the availability of and access to capital to fund future capital requirements and ongoing operations;
- expectations regarding participation in and funding of the Company's pension plans;
- the availability of insurance coverage to manage certain liability exposures;
- the extent of future liabilities and recoveries related to legal claims;
- prevailing regulatory, tax and environmental laws; and
- future operating costs and performance, including the Company's ability to achieve operating efficiencies and maintain sales volumes, turnover of inventories and turnover of accounts receivable.
Factors that could cause actual results or outcomes to differ materially from the results expressed, implied, or projected in the forward looking statements contained in this document include, among other things, risks associated with the following:
- the Spin-Off not delivering the anticipated long-term strategic and financial advantages for the Company, and the degree to which benefits are realized or not and the timing to realize those benefits, including the implications on the Company's financial condition, results of operations and cash flows;
- continued exposure to risks associated with the pork operations business and inability of Canada Packers to supply the Company with an adequate volume of pork to support its Prepared Foods operations, particularly pork that meets its sustainability and product claim requirements;
- failure of the Company, Canada Packers or a "specified shareholder," as defined in the ITA, to comply with the rules related to butterfly transactions under the ITA which could result in significant tax becoming payable by the Company;
- potential structural changes in global market and economic conditions which may have implications for the operations and financial performance of the Company, as well as the ongoing implications for macro socio-economic trends, trade instability and global tensions;
- macro economic trends, including inflation, consumer behaviour, recessionary indicators, labour availability and labour market dynamics and international trade trends, including tariffs, duties and global pork markets;
- developments in international trade and access to markets and supplies, as well as social, political and economic dynamics, including global conflicts;
- competition, market conditions, and the activities of competitors, customers and consumers, including the expansion or contraction of key categories, inflationary pressures and the Company's ability to secure pricing and appeal to evolving consumer trends;
- pricing of products;
- cybersecurity and maintenance and operation of the Company's information systems, policies, processes and data, recovery, restoration and long-term impacts of any prior cybersecurity event, the risk of future cybersecurity events, actions of third parties, risks of data breaches, effectiveness of business continuity planning and execution, and availability of insurance;
- geopolitical instability;
- the Company's inability to successfully and efficiently adjust operations to account for consolidated production;
- the results of the Company's execution of its business plans, the degree to which benefits are realized or not, and the timing associated with realizing those benefits, including the implications on cash flow;
- the health status of livestock, including the impact of potential pandemics;
- successful management of the Company's supply chain;
- cost savings and efficiency gains;
- operating performance, including manufacturing operating levels, fill rates and penalties;
- availability and quality of ingredients, including plant protein ingredients;
- availability of and access to capital, and compliance with credit facility covenants;
- fluctuations in the debt and equity markets;
- food safety, consumer liability and product recalls;
- reputation and public opinion;
- intellectual property, including product innovation, product development, brand strategy and trademark protection;
- the execution of capital projects and deployment of maintenance capital;
- climate change, climate regulation and the Company's sustainability performance;
- strategic risk management;
- decisions respecting the return of capital to shareholders;
- share trading price volatility;
- acquisitions and divestitures;
- pension plan assets and liabilities;
- the effectiveness of commodity and interest rate hedging strategies;
- impact of changes in the market value of hedging instruments;
- the supply management system for poultry in Canada;
- actual and threatened legal claims;
- the use of contract manufacturers;
- compliance with government regulation and adapting to changes in laws;
- fluctuations in interest rates and currency exchange rates;
- consumer trends and changes in consumer tastes and buying patterns;
- environmental regulation and potential environmental liabilities;
- consolidation in the retail environment;
- consolidation of operations and focus on protein;
- seasonality and changes in promotional activities;
- unpredictable catastrophic events;
- weather;
- employment matters, including complying with employment laws across multiple jurisdictions, the potential for work stoppages due to non-renewal of collective agreements, recruiting and retaining qualified personnel, reliance on key personnel and succession planning;
- workplace health and safety; and
- changes in International Financial Reporting Standards and other accounting standards that the Company is required to adhere to for regulatory purposes.
Readers are further cautioned that some of the forward-looking information, such as statements concerning future capital expenditures, revenue growth expectations, Adjusted EBITDA expectations, Adjusted EBITDA Margin expansion, capital allocation, free cash flow expectations, expectations regarding the Company's balance sheet and shareholder returns and expected leverage ratios, and the Company's ability to achieve its financial targets or projections may be considered to be financial outlook for purposes of applicable securities legislation. The Company's financial outlook is presented to evaluate potential future earnings and anticipated future uses of cash flows and may not be appropriate for other purposes. Readers should not assume that the Company's financial outlook will be achieved.
Many factors could cause the Company's actual results, performance, achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements herein, including, without limitation, the factors found under the heading "Risk Factors" in the Company's Annual Management's Discussion and Analysis for the year ended December 31, 2025. The reader should review such section in detail. Additional information concerning the Company, including the Company's Annual Information Form for the year ended December 31, 2025, is available under the Company's profile on SEDAR+ at www.sedarplus.ca.
The Company cautions that the foregoing list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect its results. The Company operates in a highly competitive and rapidly changing environment in which new risks often emerge. It is not possible for management to predict all risks, nor assess the impact of all risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. The forward-looking information contained in this document represents management's expectations as of the date of this document (or as of the date they are otherwise stated to be made) and are subject to change after such date. Maple Leaf disclaims any intention, obligation or undertaking to update or revise any forward-looking information, whether written or oral, as a result of new information, future events or otherwise, except as required under applicable securities laws.
About Maple Leaf Foods Inc.
Maple Leaf Foods (TSX: MFI) is a purpose-driven, protein-focused, brand-led consumer packaged goods company headquartered in Mississauga, Ontario. It proudly produces responsibly made, delicious food under powerhouse brands that include Maple Leaf®, Maple Leaf Prime®, Maple Leaf Natural Selections®, Maple Leaf Mighty Protein™, Musafir™, Schneiders®, Mina® Halal, Greenfield Natural Meat Co.®, LightLife®, Field Roast®, and Yves Veggie Cuisine®. Committed to Raising the Good in Food and bringing customers protein with purpose, Maple Leaf Foods delivers shared value for all its stakeholders by leading the way in safety and sustainability, building loved brands, operating with excellence, developing extraordinary talent, and broadening its impact through innovation and geographic reach.
Consolidated Interim Balance Sheets
(In thousands of Canadian dollars) As at September As at September As at December
30, 30, 31,
(Unaudited) 2026 2025 2025
ASSETS
Cash and cash equivalents $196,789 $187,472 $143,409
Accounts receivable 133,244 127,286 139,075
Notes receivable 62,725 47,088 62,116
Inventories 518,417 512,095 472,296
Biological assets 11,937 11,195 10,921
Income and other taxes recoverable 510 2,474 2,604
Prepaid expenses and other assets 31,575 23,966 24,386
Assets of disposal group held for distribution 877,841
Total current assets $955,197 $1,789,417 $854,807
Property and equipment 1,664,239 1,718,817 1,716,370
Right-of-use assets 64,204 74,556 71,182
Investments 109,928 8,308 121,830
Investment property 55,196 56,588 55,656
Employee benefits 64,600 24,200 50,576
Other long-term assets 18,172 19,054 8,132
Deferred tax asset 37,650 45,193 36,117
Goodwill 387,353 387,353 387,353
Intangible assets 237,939 324,649 239,907
Total long-term assets $2,639,281 $2,658,718 $2,687,123
Total assets $3,594,478 $4,448,135 $3,541,930
LIABILITIES AND EQUITY
Accounts payable and accruals $557,809 $507,105 $514,585
Current portion of provisions 9,712 6,807 10,364
Current portion of long-term debt 1,791 351,863 2,096
Current portion of lease obligations 17,863 18,521 18,457
Income taxes payable 73,119 79,542 92,314
Other current liabilities 18,326 22,110 23,526
Liabilities of disposal group held for distribution 234,531
Total current liabilities $678,620 $1,220,479 $661,342
Long-term debt 1,135,296 1,190,486 1,136,493
Lease obligations 68,130 78,753 75,464
Employee benefits 54,323 60,586 56,106
Provisions 10,563 2,599 2,719
Other long-term liabilities 2,222 5,484 4,589
Deferred tax liability 284,778 256,093 284,223
Total long-term liabilities $1,555,312 $1,594,001 $1,559,594
Total liabilities $2,233,932 $2,814,480 $2,220,936
Shareholders' equity
Share capital $943,508 $930,513 $930,411
Retained earnings 368,017 651,159 343,108
Contributed surplus 15,839 11,950
Accumulated other comprehensive income 53,021 37,842 40,964
Accumulated other comprehensive loss of disposal group held for distribution (1,066)
Treasury shares (4,000) (632) (5,439)
Total shareholders' equity $1,360,546 $1,633,655 $1,320,994
Total liabilities and equity $3,594,478 $4,448,135 $3,541,930
Consolidated Interim Statements of Earnings
(In thousands of Canadian dollars, except share amounts) Three months ended September Nine months ended September
30, 30,
(Unaudited)
2026 2025 2026 2025
Sales $1,034,703 $1,010,514 $3,017,698 $2,921,423
Cost of goods sold 858,873 847,747 2,469,288 2,417,072
Gross profit $175,830 $162,767 $548,410 $504,351
Selling, general and administrative expenses 95,983 101,450 302,347 304,158
Earnings before the following: $79,847 $61,317 $246,063 $200,193
Restructuring and other related costs 13,583 2,002 15,655 6,210
Other expense 2,537 316 8,048 2,968
Share of (earnings) loss of associate 7,316 10,491
Earnings before interest and income taxes $56,411 $58,999 $211,869 $191,015
Interest expense and other financing costs 19,975 23,994 53,439 77,581
Earnings before income taxes $36,436 $35,005 $158,430 $113,434
Income tax expense 14,109 11,668 49,237 35,078
Earnings from continuing operations $22,327 $23,337 $109,193 $78,356
Earnings from discontinued operations 19,719 72,040
Earnings $22,327 $43,056 $109,193 $150,396
Earnings per share attributable to common
shareholders:
Basic earnings per share $0.18 $0.35 $0.88 $1.21
Diluted earnings per share $0.17 $0.34 $0.86 $1.19
Basic earnings per share from continuing operations $0.18 $0.19 $0.88 $0.63
Diluted earnings per share from continuing operations $0.17 $0.18 $0.86 $0.62
Weighted average number of shares (millions)
Basic 124.5 124.4 124.4 124.0
Diluted 127.8 126.6 127.7 126.2
Consolidated Interim Statements of Other Comprehensive Income
(In thousands of Canadian dollars) Three months ended September Nine months ended September
30, 30,
(Unaudited)
2026 2025 2026 2025
Earnings $22,327 $43,056 $109,193 $150,396
Other comprehensive income (loss)
Actuarial gain that will not be reclassified to profit or loss (Net of tax of $1.1 million and $5.7 million; 2025: $2.6 million and $1.5 million) $3,208 $7,189 $16,876 $3,870
Share of other comprehensive income of associate (Net of tax of $0.2 million and $0.5 million; 2025: $0.0 million and $0.0 million) 616 1,478
Total items that will not be reclassified to profit or loss $3,824 $7,189 $18,354 $3,870
Items that are or may be reclassified subsequently to profit or loss:
Change in fair value of investments (Net of tax of $0.0 million and $0.0 million; 2025: $0.0 million and $0.0 million)
$ - $(3,371) $(3,371)
Change in accumulated foreign currency translation adjustment (Net of tax of $0.0 million and $0.0 million; 2025: $0.0 million and $0.0 million) (732) 8,000 8,792 (12,975)
Change in foreign exchange on long-term debt designated as a net investment hedge (Net of tax of $0.1 million and $1.2 million; 2025: $1.1 million and $1.8 million) 612 (5,929) (6,925) 9,414
Change in cash flow hedges (Net of tax of $3.4 million and $3.5 million; 2025: $0.2 million and $0.7 million) 9,906 (477) 10,270 (1,874)
Share of other comprehensive income (loss) of associate (Net of tax of $0.2 million and $0.1 million; 2025: $0.0 million and $0.0 million) 551 227
Total items that are or may be reclassified subsequently to profit or loss $10,337 $(1,777) $12,364 $(8,806)
Other comprehensive income (loss) from continuing operations $14,161 $5,412 $30,718 $(4,936)
Other comprehensive income from discontinued operations(i) (Net of tax of $0.0 million and $0.0 million; 2025: $0.3 million and $0.1 million) (1,049) 629
Total other comprehensive income (loss) $14,161 $4,363 $30,718 $(4,307)
Comprehensive income $36,488 $47,419 $139,911 $146,089
Consolidated Interim Statements of Changes in Total Equity
Accumulated other comprehensive income (loss)
(In thousands of Canadian dollars) Share Retained Contributed Foreign Unrealized Unrealized Revaluation Treasury Total
currency gains
(losses) gains (losses) surplus
(Unaudited) capital earnings surplus translation on cash flow on fair value shares equity
adjustment hedges of investments
(i) (i) (i)
Balance at December 31, 2025 $930,411 343,108 11,950 11,515 (1,149) (10,012) 40,610 (5,439) $1,320,994
Earnings 109,193 109,193
Other comprehensive income (loss)(ii) 18,354 1,892 10,472 30,718
Dividends declared ($0.63 per share) 6,505 (78,963) 533 (71,925)
Share-based compensation expense 16,325 16,325
Deferred taxes on share-based compensation 2,150 2,150
Exercise of stock options 17,140 (2,297) 14,843
Shares purchased by RSU trust (8,336) (8,336)
Sale of investment property 307 (307)
Shares re-purchased (10,548) (18,379) (11,435) (40,362)
Settlement of share-based compensation (3,306) (19,523) 9,775 $(13,054)
Balance at September 30, 2026 $943,508 368,017 13,407 9,323 (10,012) 40,303 (4,000) $1,360,546
Accumulated other comprehensive income (loss)
(In thousands of Canadian dollars) Share Retained Contributed Foreign Unrealized Unrealized Revaluation Accumulated Treasury Total
currency gains
(losses) gains (losses) surplus
(Unaudited) capital earnings surplus translation on cash flow on fair value other shares equity
adjustment(i) hedges(i) of
investments(i)
comprehensive
income of
disposal
group
held for
distribution
Balance at December 31, 2024 $897,839 587,393 12,482 14,545 (1,257) (6,641) 37,347 (3,431) $1,538,277
Earnings 150,396 150,396
Other comprehensive income (loss)(ii) 2,911 (3,056) (791) (3,371) (4,307)
Dividends declared ($0.72 per share) 8,263 (89,541) (81,278)
Share-based compensation expense 18,204 18,204
Deferred taxes on share-based compensation 6,275 6,275
Exercise of stock options 26,239 26,239
Shares re-purchased (1,828) (7,108) (8,936)
Shares purchased by RSU trust (4,094) (4,094)
Reclassification of 956 110 (1,066)
accumulated other
comprehensive income of
disposal group held for
distribution
Settlement of share-based compensation (14,014) 6,893 (7,121)
Balance at September 30, 2025 $930,513 651,159 15,839 12,445 (1,938) (10,012) 37,347 (1,066) (632) $1,633,655
(i)
Items that are or may be subsequently reclassified to profit or loss.
(ii) Included in other comprehensive income (loss) is the change in actuarial gains and losses that will not be reclassified to profit or loss and
has been reclassified to retained earnings.
Consolidated Interim Statements of Cash Flows
(In thousands of Canadian dollars) Three months ended September Nine months ended September
30, 30,
(Unaudited)
2026 2025 2026 2025
CASH PROVIDED BY (USED IN):
Operating activities
Earnings $22,327 $43,056 $109,193 $150,396
Add (deduct) items not affecting cash:
Change in fair value of biological assets 4,884 (3,440)
Depreciation and amortization 47,351 60,982 140,511 186,739
Share-based compensation 5,114 5,798 16,325 18,204
Deferred income tax (recovery) expense 1,341 (27,914) (5,609) (39,868)
Current income tax expense 12,768 49,228 54,846 105,449
Interest expense and other financing costs 19,975 24,996 53,439 80,876
Loss (gain) on sale of long-term assets (519) (527) 1,255 (11,136)
Impairment (reversal) of property and equipment and right-of-use assets (461) 928 2,157
Change in fair value of non-designated derivatives 839 (3,341) (5,364) (2,963)
Share of (earnings) loss of associate 7,316 10,491
Change in net pension obligation 5,025 735 6,769 2,687
Net income taxes paid (18,163) (4,891) (71,621) (6,485)
Interest paid, net of capitalized interest (19,332) (24,658) (51,352) (79,358)
Change in provision for restructuring and other 11,581 (2,895) 7,117 (8,946)
related costs
Change in derivatives margin 553 (386) (5,041) 1,653
Other (1,111) 10,292 7,601 (8,111)
Change in non-cash operating working capital 105,623 (62,979) (9,862) (66,004)
Cash provided by operating activities $200,227 $72,380 $259,626 $321,850
Investing activities
Additions to long-term assets $(29,915) $(27,568) $(73,550) $(76,853)
Interest paid and capitalized (503) (146) (1,444) (729)
Proceeds from sale of long-term assets 2,127 1,250 2,644 16,004
Dividends from associate 2,188
Cash used in investing activities $(28,291) $(26,464) $(70,162) $(61,578)
Financing activities
Dividends paid $(24,038) $(27,397) $(71,925) $(81,278)
Net decrease in long-term debt (100,243) (50,286) (19,902) (130,333)
Payment of lease obligation (3,820) (8,690) (11,260) (24,873)
Receipt of lease inducement 1,326
Exercise of stock options 125 25,705 14,843 26,239
Purchase of treasury shares (8,336) (4,094)
Repurchase of shares (15,005) (8,936) (40,011) (8,936)
Payment of financing fees (21) (819) (548)
Cash used in financing activities $(143,002) $(69,604) $(136,084) $(223,823)
Increase (decrease) in cash and cash equivalents $28,934 $(23,688) $53,380 $36,449
Cash and cash equivalents, beginning of period 167,855 236,045 143,409 175,908
Cash and cash equivalents, end of period $196,789 $212,357 $196,789 $212,357
Cash and cash equivalents is comprised of:
Cash and cash equivalents from continuing operations $196,789 $187,472 $196,789 $187,472
Cash and cash equivalents of disposal group held for distribution
$ - $24,885
$ - $24,885
Cash and cash equivalents, end of period $196,789 $212,357 $196,789 $212,357
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SOURCE Maple Leaf Foods Inc.
Media Contact: media.hotline@mapleleaf.com; Investor Contact: investor.relations@mapleleaf.com