Maple Leaf Foods Reports First Quarter 2026 Financial Results

TSX: MFI

Maple Leaf Foods reports Revenue growth of 6.2% and Earnings of $46 million

MISSISSAUGA, ON, May 7, 2026 /PRNewswire/ - Maple Leaf Foods Inc. ("Maple Leaf Foods" or "the Company") (TSX: MFI) today reported its financial results for the first quarter ended March 31, 2026.

First Quarter 2026 Highlights⁽ⁱ⁾

Executive Commentary

"Our first quarter results reflect the disciplined execution of our strategic blueprint across the business," said Curtis Frank, President and Chief Executive Officer of Maple Leaf Foods. "We delivered 6% year-over-year revenue growth, the sequential margin recovery we expected, and higher Adjusted EBITDA, driven by operating efficiency, favourable mix, and disciplined cost management, while generating strong Free Cash Flow."

"Our transformation into a purpose-driven, protein-focused, brand-led CPG company is delivering tangible results," continued Frank. "With leading brands, scalable growth platforms, and initiatives like Fuel for Growth strengthening our cost structure, we are on track to deliver our 2026 outlook of mid-single-digit revenue growth, continued margin expansion and disciplined capital allocation."

Outlook

For information on the Company's short and long term outlook please refer to the Company's press releases dated January 13, 2026 and March 10, 2026 respectively, which are available on SEDAR+ and on the company's website at https://www.mapleleaffoods.com/media/.

Financial and Operating Highlights

Maple Leaf Foods Inc. ("Maple Leaf Foods" or the "Company") 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.

(Unaudited)

Sales for the first quarter of 2026 were $962.9 million compared to $906.7 million last year, an increase of 6.2%. Poultry sales increased by 11.7% driven by improved channel mix, growth in retail and foodservice volumes and pricing, which were partially offset by increased trade promotion spending. Prepared Foods sales increased by 2.3% driven by pricing, improved product mix and related party revenue. These factors were partially offset by lower volumes tied to timing of promotional activity and reduced industrial sales, unfavourable foreign exchange impacts on U.S. sales, and higher trade promotion spending.

Gross profit for the first quarter of 2026 increased to $180.4 million (gross margin⁽ⁱ⁾ of 18.7%) compared to $154.1 million (gross margin⁽ⁱ⁾ of 17.0%) last year. The increase in gross profit was driven by improved operating efficiency, inclusive of the benefits from the Fuel for Growth program, favourable Poultry channel mix, and a change in unrealized gains and losses on commodity futures contracts. These factors were partially offset by higher trade promotion spending.

Selling, general and administrative ("SG&A") expenses for the first quarter of 2026 were $101.9 million which is broadly consistent with $103.1 million last year.

Earnings before income taxes for the first quarter of 2026 were $64.0 million compared to $24.3 million last year. The increase is driven by the same factors as noted above for gross profit, 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, partly offset by higher gains on fixed asset disposals in the prior year.

Earnings from continuing operations for the first quarter of 2026 were $46.1 million ($0.37 basic earnings per share from continuing operations) compared to $16.0 million ($0.13 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.

Earnings for the first quarter of 2026 were $46.1 million ($0.37 basic earnings per share) compared to $49.6 million ($0.40 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 factors noted above.

Adjusted Operating Earnings⁽ⁱⁱ⁾ for the first quarter of 2026 were $75.9 million compared to $57.0 million last year, and Adjusted Basic Earnings per Share for the first quarter of 2026 was $0.34 compared to $0.21 last year.  The increase was driven by factors consistent with those noted above for gross profit, excluding the impact of unrealized gains and losses on commodity futures contracts.

Adjusted EBITDA⁽ⁱⁱ⁾ for the first quarter of 2026 was $122.4 million, compared to $115.8 million last year, driven by factors consistent with those noted above for Adjusted Operating Earnings along with a higher other expense, largely as a result of higher gains on fixed asset disposals in the prior year. Adjusted EBITDA Margin was 12.7%, compared to 12.8% last year, also driven by factors consistent with those noted above.

Adjusted Earnings Before Taxes ("Adjusted EBT")⁽ⁱⁱ⁾ for the first quarter of 2026 was $60.1 million compared to $37.9 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 first quarter of 2026 was $54.7 million compared to $9.9 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 March 31, 2026 as filed on SEDAR+.

Free Cash Flow⁽ⁱⁱ⁾ for the first quarter of 2026 was an inflow of $36.6 million compared to an outflow of $13.6 million in the prior year. Removing the impacts of discontinued operations, Free Cash Flow increased largely as a result of timing of investment in seasonal working capital, increased earnings net of non-cash items and lower interest payments.

Net Debt⁽ⁱⁱ⁾ as at March 31, 2026 was $1,009.1 million, a decrease of $544.6 million compared to the prior year. Net Debt to Trailing Twelve Months Adjusted EBITDA decreased by 0.5x.  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 March 31, 2026 as filed on SEDAR+.

Other Matters

On May 6, 2026, the Board of Directors approved a quarterly dividend of $0.21 per share, $0.84 per share on an annual basis, payable on June 30, 2026 to shareholders of record at the close of business on June 8, 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 May 7, 2026, to review Maple Leaf Foods' first quarter financial results. To participate in the call, please dial 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 289-819-1450 or 1-888-660-6345 (Passcode: 16034#).

A webcast of the first quarter conference call will also be available at: https://app.webinar.net/01plLeR93Oj.

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 first quarter financial results will be available at www.mapleleaffoods.com/investors.

Non-IFRS Financial Measures

The Company uses the following non-IFRS measures: Adjusted Operating 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 used by Management to evaluate financial operating results. Adjusted Operating Earnings is defined as earnings before 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 months ended March 31, 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.  

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 months ended March 31, 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. 

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 March 31, 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.

(Unaudited)

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:

(Unaudited)

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:

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:

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:

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 this MD&A. 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 leading, protein-focused 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^® and Field Roast^®. 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

Consolidated Interim Statements of Earnings

(Unaudited)

    shareholders:

Consolidated Interim Statements of Other Comprehensive Income

(Unaudited)

Consolidated Interim Statements of Changes in Total Equity

(Unaudited)

capital

earnings

surplus

shares

equity

(Unaudited)

capital

earnings

surplus

shares

equity

   Consolidated Interim Statements of Cash Flows

(Unaudited)

    related costs

View original content to download multimedia:https://www.prnewswire.com/news-releases/maple-leaf-foods-reports-first-quarter-2026-financial-results-302765405.html

SOURCE Maple Leaf Foods Inc.