Maple Leaf Foods Hosts 2013 Investor Day
TORONTO, June 20, 2013
Highlights Final Phase of Strategic Projects to Deliver 2015 Margin Targets
TORONTO, June 20, 2013 /PRNewswire/ - Maple Leaf Foods (MFI: TSX) hosted its
2013 Investor Day today, updating attendees on initiatives underway to
continue to increase profitability and reach the Company's 2015 EBITDA margin
"Our trend line of EBITDA margin expansion shows that our strategies are
working," said Michael H. McCain, President and CEO. "Driving this improvement
are a material cost reduction in primary processing, early returns from our
prepared meats strategy, and the increased contribution from innovation and
brand building. We are in the final intense phase of increasing scale and
productivity in our manufacturing and distribution network, which along with
other projects is expected to substantially increase our profitability and
Maple Leaf has increased Earnings before Tax and Depreciation (EBITDA) by 144
percent since 2003 and EBITDA in its Protein operations by 50 percent since it
launched its protein restructuring in 2007. The Company is targeting to
deliver an EBITDA margin of 11.7 percent in 2015 (restated due to changes in
pension accounting) compared to 7.9 percent in 2012. The Company outlined the
significant benefits, valued at over $100 million in EBITDA, of productivity
and other cost reductions that it expects to generate as a result of its
investments in new facilities and manufacturing technologies.
Commissioning of major expansions at the Company's prepared meats facilities
in Winnipeg, Saskatoon and Brampton is well underway, utilizing advanced
technologies that will significantly enhance output and yields. Construction
is on schedule to establish one of the most advanced prepared meats
manufacturing facility in North America, which will commence production later
this year in Hamilton, Ontario. A new eastern Canada distribution centre will
also open this month that will consolidate operations from 19 Company owned
and third party facilities by the end of 2014. These and other projects
included in the Company's value creation strategy, which was launched in 2010,
represent a total capital investment of over $780 million.
Management also updated investors on progress in restoring volumes and growth
in its prepared meats business after a challenging first quarter, which was
impacted by volatile commodity market conditions and price increases to offset
these higher costs. The Company has achieved a significant strengthening in
volumes and continues to expect year-over year growth. Other presentations
included updates on the bakery business and insights into innovation and brand
strategies that build on the Company's leading brands and market shares.
A webcast of the presentations will be available as of June 21, 2013 at
Investor Day presentations and the webcast will also be available on the
Company's website in the Investor section under Investor
Information/Presentations & Webcasts.
SOURCE Maple Leaf Foods Inc.
Maple Leaf Foods Investor Contact: Nick Boland VP, Investor Relations:
Maple Leaf Foods Media Contact: Dave Bauer, Corporate Communications:
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