Maple Leaf Foods, a Canadian meat and plant-based protein products company, announced its Q4 earnings on Tuesday, beating analyst expectations. The company reported revenue of C$1.19B, up 6.3% YoY, and a Non-GAAP EPS of -C$0.28. Despite the positive earnings, the Adjusted EBITDA margin for the fourth quarter decreased to 4.7% from 6.8% last year.
In its outlook for 2023, Maple Leaf Foods expects mid-to-high single-digit sales growth in its meat protein segment and aims to achieve a target Adjusted EBITDA margin range of 14% – 16% when market conditions stabilize. Additionally, the company aims to deliver neutral or better Adjusted EBITDA in the latter half of 2023 in its plant protein segment.
The company also revealed its capital expenditure plans for 2023, which are expected to be less than C$250 million. Up to C$120 million of this amount will be dedicated to maintenance projects, while the rest will go toward growth capital.
“We are pleased to report a strong quarter, which concludes a year that presented numerous challenges and demonstrates our ability to navigate challenging market conditions,” said Michael McCain, President, and CEO of Maple Leaf Foods.
The company’s positive outlook for 2023 comes as it continues to make strategic investments in both its meat and plant protein segments. Last month, Maple Leaf Foods announced a C$310 million investment to build a new poultry facility in Ontario, which is expected to create over 1,000 new jobs in the region.
Overall, Maple Leaf Foods remains optimistic about its future growth prospects, and the company’s recent investments in both its meat and plant-based protein segments suggest that it is well-positioned to capitalize on evolving consumer preferences and trends.