Business and

Financial Overview

We are dedicated to winning in the marketplace by continuing to pursue profitable growth in our meat protein business and are pivoting to a revised strategy to pursue steady growth in our plant protein business.

schneiders ham meat protein group

Meat Protein

The Meat Protein Group is comprised of prepared meats, ready-to-cook and ready-to-serve meals, snack kits, value-added fresh pork and poultry products that are sold to retail, foodservice and industrial channels, and agricultural operations in pork and poultry. The Meat Protein Group includes leading brands such as Maple Leaf®, Maple Leaf Prime®, Schneiders®, Mina®, Greenfield Natural Meat Co.®, Swift® and other leading regional brands.

Sales for 2021 increased 6.1% to $4,366.7 million compared to $4,116.5 million last year. Sales growth was driven by pricing action implemented in 2021 to mitigate inflation and structural cost increases, growth in branded and sustainable meats, and higher poultry volumes, which more than offset the impact of an extra week in the fourth quarter of 2020, the impact of foreign exchange, lower pork volumes and lower sales to China.

Adjusted EBITDAi for 2021 were $527.1 million compared to $510.1 million last year, and year-to-date Adjusted EBITDA Margin1 for 2021 was 12.1% compared to 12.4% last year.

(i)Refer to MD&A section 32. Non-IFRS Financial Measures of this document for the definition of these non-IFRS measures.

Field Roast sausages plant protein group

Plant-Based Protein

The Plant Protein Group is comprised of refrigerated plant protein products, premium grain-based protein, and vegan cheese products sold to retail, foodservice and industrial channels. The Plant Protein Group includes the leading brands Lightlife® and Field Roast™.

Sales for 2021 were $184.1 million compared to $210.8 million last year, representing a decrease of 12.7%, or 6.4% after excluding the impacts of foreign exchange. The sales decline was driven by lower retail product volumes, including the impact of an extra week in the fourth quarter of 2020. This more than offset growth in food service volumes and pricing action implemented in the third quarter of 2020 to mitigate inflation and structural cost increases.

Adjusted Operating Earningsi for 2021 were a loss of $142.1 million compared to a loss of $125.7 million last year.

(i)Refer to MD&A section 32. Non-IFRS Financial Measures of this document for the definition of these non-IFRS measures.

financial performance meat protein group sales and adjusted ebitda
financial performance plant protein sales

Driving Profitable Growth in Meat Protein

We are pursuing profitable growth in our Meat Protein Group through the following strategic areas:

1. Investing in our brands to build demand and loyalty
2. Leveraging our leadership in sustainable meats
3. Broadening reach into new geographies and channels
4. Delivering operational excellence

Mina chicken - driving profitable growth in meat protein
Field roast stadium dogs - charting a new path forward in plant protein

Charting a New Path Forward in Plant-Based Protein

In late 2021, the Company announced that it was re-evaluating our outlook for the Plant Protein Group and launching a comprehensive review of the overall plant protein category.

This decision was driven by a pronounced slowdown in growth rates in the category, particularly in the second half of the year, which fueled the Company’s imperative to identify and thoroughly assess the causes, near and long-term trends, and overall implications. While the Company’s analysis is ongoing, the results to date confirm that the very high category growth rates previously predicted by many industry experts are unlikely to be achieved given current customer feedback, experience, buy rates and household penetration. Based on this new information, we believe that the category will continue to grow at more modest, but still attractive rates.

Key Construction Capital Projects

MLFs bacon centre of excellence
Bacon Centre for Excellence

In 2021, Maple Leaf Foods completed construction of a $182 million expansion to our Winnipeg prepared meats plant, significantly increasing our bacon production capacity with new in-house capacity for pre-cooked, microwaveable bacon.

MLF's London poultry facility
London Poultry Facility

We are nearing completion of a world-class, $772 million value-added poultry facility in London, Ontario. The new 640,000 square foot facility is expected to be one of the most technologically advanced poultry-processing plants in the world, with leading-edge food safety, environmental, and animal welfare processes and technologies.

MLFs Indianapolis tempeh facility
Indianapolis Tempeh Facility

Maple Leaf Foods wholly-owned subsidiary, Greenleaf Foods, SPC, has expanded its tempeh production capacity through the acquisition and build out of a 118,000 square foot facility in Indianapolis, Indiana. Initial production at the plant is targeted to begin in early 2022.

Sustainability Report

Learn more about our sustainability performance in our 2021 Sustainability Report.

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