MISSISSAUGA, ONTARIO – Maple Leaf Foods Inc. announced on Feb. 22 some organizational changes and shifts in its business going forward, along with its earnings report for the 2023 fiscal year, ended Dec. 31, 2023.

The company confirmed it would combine the Meat and Plant Protein businesses run by the company together under a single umbrella. 

“We are taking steps today to simplify the business, bringing our meat protein and Plant Protein groups together to form a prepared foods powerhouse with a focus on growing our Canadian business while leveraging a combined platform to accelerate growth in the United States, leveraging the synergies attached to acting as one Maple Leaf,” said Curtis Frank, chief executive officer of Maple Leaf Foods in a conference call to stakeholders on Feb.22. “We are sharpening our executional focus and today announced some important leadership changes.”

On the personnel side of the company, Adam Grogan was promoted to chief operating officer. Grogan will lead the prepared foods division, which includes prepared meats, poultry and plant protein, and the supply chain network across Canada and the United States.

 Grogan has worked for Maple Leaf for more than 25 years in various operational and commercial leadership roles.

Casey Richards was also named to the newly created role of president of Maple Leaf Foods USA. Richards will be responsible for growth in retail and foodservice around the United States. He brings more than 20 years of global marketing and general management experience into this new job including the last six at Maple Leaf.  

For the year ended Dec. 31, 2023, the company recorded a loss of C$125 million ($92.7 million), or C$1.03 per share, which was up from fiscal 2023 when the company recorded a C$311 million loss, or C$2.52 per share, on the common stock.

Annual sales were C$4.9 billion ($3.6 billion), up from C$4.7 billion the year before.

For the year, Meat Protein Group sales increased 3.1% to C$4.74 billion ($3.52 billion). Business unit gross profit went up to C$478.2 million ($354.6 million) from C$474.7 million the year before. Maple Leaf contributed the flat year-over-year numbers to pricing actions being largely offset by higher input costs, market headwinds and startup expenses.

Annual sales for Maple Leaf’s Plant Protein Group were C$147 million ($109 million) compared with C$169.3 million in 2023. The sales decline was driven by lower volume in retail and foodservice products that were partially offset by price increases implemented in prior quarters to mitigate inflation.

The unit’s annual loss stood at C$2.2 million ($1.63 million) down from C$36.5 million the year before.

“While there are still some headwinds to navigate in the very near term, the structural health of our business and our long-term growth potential to create shared value is undeniable,” Frank said. “Bringing together our protein businesses to enable a brand-led protein powerhouse will allow us to realize the full potential of a platform that has been nearly three decades in the making.” 

For its fourth quarter, the company reported a loss of C$9.3 million ($6.9 million). During the same quarter the year before, Maple Leaf Foods earned C$41.5 million. 

Quarterly sales rose 0.6% to C$1.19 billion ($882 million) from the same quarter the prior year.

For the quarter, Meat Protein Group sales increased 0.8% to C$1.16 billion ($860 million). The company did point out that the London poultry plant and its Bacon Centre of Excellence delivered approximately $25 million in incremental adjusted EBITDA.