Maple Leaf Foods Q2 profit rises on strong poultry demand

Maple Leaf Foods reported a 4.8% rise in second-quarter adjusted EBITDA to C$137 million, with margin expanding to 13.4%, as strong poultry demand and operating efficiencies offset weakness in prepared foods, according to Reuters.

Revenue grew 1.6% year on year but missed analyst expectations. The Canadian protein company reaffirmed its 2026 outlook for mid-single-digit revenue growth and maintained its adjusted EBITDA guidance of C$520 million to C$540 million.

Poultry sales rose 7.1%, driven by higher volumes, improved channel mix and pricing, partly offset by increased trade promotion spending.

Prepared foods sales fell 2.0% due to lower volumes and higher promotion spending, partly offset by pricing and an improved product mix.

"We are seeing the benefits of the transformation we have made into a purpose-driven, protein-focused, and brand-led CPG company," said Curtis Frank, president and CEO of Maple Leaf Foods. "Our focus on profitable growth, disciplined cost management, and initiatives like Fuel for Growth continues to strengthen our competitive position while enhancing our long-term earnings potential."

Maple Leaf Foods said it expects to maintain an investment-grade balance sheet through 2026.