MISSISSAUGA, ONTARIO — Maple Leaf Foods Inc. cited improving pork conditions despite a difficult consumer environment as one of many factors leading to the company’s growth in the fiscal third quarter of 2024.

“In the third quarter of 2024, we made significant strides in executing our strategic playbook, achieving strong results in a challenging consumer landscape,” said Curtis Frank, president and chief executive officer of Maple Leaf Foods. “Our sales increased by 1.8%, driven by over 3% growth in our prepared meats business, while Adjusted EBITDA rose to $141 million.”

For the period ended Sept. 30, 2024, Maple Leaf reported a net gain of C$26.2 million ($12.6 million), equal to C14¢ (10¢) per share on the common stock, an improvement from last year’s loss of C$4.3 million, or C4¢ per share.

Total quarterly sales rose slightly year-over-year from C$1.24 billion in 2023 to C$1.26 billion ($900 million) in 2024. Adjusted operating earnings increased to C$73.6 million ($52.6 million), compared to C$70.5 million from the same period last year.

“These results reflect our continued investment in our market-leading brands, our leadership in sustainable meats, and alignment with our customers’ strategies, as we expanded retail market share and demonstrated growth in our Food Service portfolio,” Frank said. “These factors, together with improving pork market conditions and the benefits from our capital projects, fueled a 9.1% year-over-year increase in Adjusted EBITDA.”

A closer look at performance showed that the Prepared Foods business unit increased sales by 2% year-over-year. Within Prepared Foods, prepared meats and plant protein sales increased by 3.1% and 1.1%, respectively, which were partially offset by a decline in poultry by 0.9% compared to the same period last year. Maple Leaf said the decrease in poultry sales was driven by the repatriation of production to the London poultry facility and higher internalization of poultry supply into prepared meats and was partially offset by improved channel mix tied to retail volume growth.

Meanwhile, sales in the Pork business unit increased by 1.1% due to improved product mix and favorable foreign exchange, the company said.

The favorable conditions for the Pork operating unit are a good sign as Maple Leaf prepares to separate the segment into its own company. Last month, Maple Leaf unveiled the name of the new pork spin-off, Canada Packers. Additionally, Maple Leaf announced a plan for a tax-free structure for the new independent company. The separation is expected to be completed in 2025.

Under the new structure, the company’s completion is subject to the receipt of an advance tax ruling from the Canada Revenue Agency — an added measure that may prolong the closing of the transaction. However, Maple Leaf expects Canada Packers to be fully formed in 2025.

“We continue to be very excited about the benefits of the spin-off of our pork business, and the future of Maple Leaf Foods and Canada Packers as independent, public companies,” Frank said. “The prospect of executing the transaction as a tax-free spin-off is a positive development as we continue to advance our strategy to unlock value and unleash the potential of these two unique and distinct businesses.”

Frank predicted additional progress in the fourth quarter and was confident in the overall 2024 outlook for Maple Leaf.