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Maple Leaf Foods Forecasts Growth in Meat Protein Group

by Administrator Forexezy
August 6, 2023
in News
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Maple Leaf Foods, a Canadian packaged-meats company, is optimistic about the growth prospects of its meat protein group in 2023. The company plans to shift its strategy to address the underperformance of its plant-protein segment.

Sales are expected to increase by a mid-to-high single digit in the full year due to the strong recognition of the brand and expansion in the U.S. market. Additionally, Maple Leaf Foods credits the growing demand for sustainable meats for the anticipated growth.

However, the company acknowledges that achieving its target for adjusted earnings before interest, taxes, depreciation, and amortization margin of 14% to 16% will depend on market normalization, particularly for pork.

Regarding the plant-protein unit, a recent comprehensive review revealed that the previously projected accelerated growth rates are not attainable. Nevertheless, Maple Leaf Foods still expects the market for plant-protein products to grow at a modest and appealing rate. In response, the company has adjusted its strategy and investment thesis to achieve neutral or improved adjusted Ebitda in the latter half of this year.

Maple Leaf Foods is actively implementing these changes and anticipates a steady improvement in adjusted Ebitda throughout the year.

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Tags: Maple Leaf Foodsmeat protein groupplant-protein segmentsales growthsustainable meats
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