Maple Leaf Foods enters 2026 with clearer priorities since pork business spinoff: CEO
Maple Leaf Foods chief executive Curtis Frank says the spin-off of the company's pork operations has allowed for a sharper strategic focus as it looks to grow its business.
"Our identity and our priorities are clearer than ever," Frank told investors during the fourth quarter earnings call on Thursday.
Frank said the company entered 2026 with operational momentum and clearer priorities to increase revenue and profits through its diverse products. The company also plans to reduce its costs and increase prices to offset the elevated costs of raw meat.
READ: Maple Leaf Foods to increase retail prices amid high meat costs
The meat packaging company spun off Canada Packers in October as a stand-alone business with a focus on hog production and processing. Maple Leaf Foods holds a 16 per cent stake in Canada Packers and the two companies signed an evergreen supply agreement.
Maple Leaf on Thursday reported a fourth-quarter profit of $391.2 million, up from $53.5 million a year earlier, boosted by the Canada Packers spinoff. Its profit amounted to $3.06 per diluted share for the quarter ended Dec. 31, up from 43 cents per diluted share a year earlier.
On an adjusted basis, Maple Leaf said it earned 32 cents per share in its latest quarter, up from 18 cents per share in the final quarter of 2024.
RBC analyst Irene Nattel said in a note that Maple Leaf delivered "solid results" for the full quarter since the spin off of the pork business.
Consumer demand for protein has remained stable despite affordability concerns and high food inflation, the CEO said.
READ: From TikTok to the till: Making the protein surge work in-store
"There's even events unfolding in real time in the world that I think have the potential to add even more stress or different stress from the consumer side," Frank said.
He said consumers are still seeking discounted products and going for promotions, and the trend is likely to continue this year.
"The headline consumer-wise would be stable, still under material stress, looking for value and a lot of shopping on promotion," Frank said.
However, some areas have seen more resiliency than others, he said, mentioning poultry meat as an example.
Frank said poultry meat is the fastest-growing protein at the company.
"It's a staple in the consumer diet," he said. "Largely, consumers care about the offering that they're putting into their bodies."
The company also saw a modest recovery in its poultry raised without antibiotics, which Frank said points to "stability" in the category.
Maple Leaf Foods raised prices on its meat products in February to cover the elevated costs of raw meat. The company first announced its decision to pass on costs in November, after its earnings were dented by high prices of beef and turkey.
Frank said it's hard to point to consumer reaction barely a month into price changes.
However, he acknowledged that pricing could play a role in lowering volume growth during the first few months of this year.
Sales for the quarter totalled $991.2 million, up from $917.1 million a year earlier. Maple Leaf said the increase came as prepared foods sales gained 6.1 per cent, while poultry sales increased 13.1 per cent.
