By Adriano Marchese
Maple Leaf Foods has announced that it will be pivoting its strategy for its plant protein segment in response to slower growth than previously anticipated. The Canadian consumer-packaged meats company aims to achieve neutral adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the plant protein unit by the latter half of 2023.
After conducting a thorough review of the unit, Maple Leaf Foods acknowledges that the category’s growth rates will not meet earlier predictions made by industry experts. As a result, the company is taking steps to address this significant slowdown and ensure the unit’s future success.
Maple Leaf Foods is actively implementing this pivot and expects to see continuous improvement in adjusted EBITDA throughout the year. Simultaneously, the company anticipates mid-single digit sales growth in its meat protein group, which is its largest segment. This growth can be attributed to the company’s strong brand position and expanding presence in international markets.
Once markets stabilize, Maple Leaf Foods has set a target range for its adjusted EBITDA margin between 14% and 16%. This goal further underlines the company’s commitment to delivering sustainable profitability.
