mF International Limited Q4 FY2025 earnings call

• Reached an inflection point with heavy investment phase behind, now in delivery and return phase. - Executed against five core growth platforms: sustainable meats, brand investment, innovation, U.S. expansion, customer integration. - Successfully completed spinoff of pork operations into Canada Packers, now focused on being a protein-focused CPG. - Launched over 50 innovations in 2025, including two new brands. - Team Canada Olympic Partnership aligning protein brands with everyday performance.

Fourth quarter: Sales were $991 million, up 8.1% y-o-y. Prepared foods grew 6.1% driven by pricing and improved mix; poultry sales grew 13.1% driven by improved channel mix and volume growth. Full year: Sales were $3.9 billion, up 7.7%. Adjusted EBITDA in Q4 was $117.3 million, up 8.3% with a margin of 11.8%. Full year adjusted EBITDA was $476 million, up 21% with a margin of 12.2%.

• Expect mid-single-digit revenue growth from 2025. - Expect adjusted EBITDA of approximately $520 to $540 million in 2026. - Intend to maintain leverage below three times. - Expect capital investments of approximately 160 to 180 million in 2026. - Expect annual dividend growth of approximately 10%, with quarterly dividend increase from 19 cents to 21 cents per share. - Intend to renew the NCIB in Q1 of 2026.

Q: Unpack poultry performance during the quarter, key drivers and volume growth in retail vs food service.

A: Poultry revenues up over 13%, led by London Poultry, retail volume up over 10% led by Prime Raise Without Antibiotics and Mina Halal brands, food service also grew volume in double-digit range, branded market share grew around 1.7 share points.

Q: Pricing actions in mid-February, volumetric response and full implementation.

A: Passed through pricing in mid-February, partial impact within the quarter, too early to determine volume response as only a few weeks into execution.

Q: Consumer behavior, premium product mix volume gains, portfolio pressure points and upsides.

A: Consumer environment stable, under stress, flight to value, buying more on promotion, protein resilient, growth strategies effective.

Q: Consumer response to recently launched brands.

A: Positive response, Mighty Protein running ahead of plan, Musafir on track, brands in early innings but helpful to results.

Q: Promo spending evolution in 2026, products/categories, seasonality.

A: Normalized seasonality, promotional intensity reviewed, poultry and sustainable meats recovered, premiumness built, portfolio resilient.

Q: Plant protein business evolution, write-down, EBITDA generation and margins.

A: Plant protein less than 5% of revenue, viewed as upside opportunity, pathway to profitable growth, details to be shared at Investor Day.

Q: Mix evolution, levers and impact in 2026.

A: Mix positive, core driver of revenue growth, branded volumes in prepared foods grew 4%-5% in Q4, mix expected to be positive in 2026.

Q: Update on tools to manage pricing and cost volatility post-spinoff.

A: Constantly review physical hedges, financial hedges, pricing mechanisms, inventory utilization for optimization, no silver bullet but tools help stabilize earnings.

Q: Margins, sequential pressure, fuel from growth initiatives.

A: Seasonal decline in input costs, mix improvement, branded volume growth, fuel for growth initiatives mitigated challenges, sequential improvement quarter over quarter.

Q: 2026 outlook, volume growth, pricing as revenue driver.

A: Pricing and mix both contributing to revenue growth, balanced combination of mix, volume, and price-led growth expected.

Q: Industry growth, protein demand impact.

A: North American CPG growing 2%-3%, protein peers growing 4%-5%, Maple Leaf outgrowing protein, protein outgrowing CPG.

Q: U.S. market reach expansion, traction, scaling from 12 to 20 products.

A: First 12 products in U.S. market difficult to enter, relationships and platform in place, confident in scaling up US platform, details at Investor Day.

Q: Time for new products to reach profitability similar to company average.

A: Varies, depends on factors like accretiveness, marketing investment, manufacturing footprint, expected within first 12 months or so to run at portfolio average margins.

Q: RWA Prime growth conflicting with stress consumer, consumer behavior.

A: Bifurcation in market, poultry resilient as staple, strong proposition in RWA Prime, market share in branded poultry high.

Q: Price increase mid-February, full implementation, retailer pushback, volume reaction.

A: Implemented pricing in quarter, too soon to evaluate consumer response, normal period of adjustment in volume following pricing, will watch volumetric response closely.

Q: Targeted pace of buybacks in 2026.

A: Intention to renew NCIB, be active with NCIB, expect to be active in buying back shares over next 12 months, will talk more about capital allocation priorities and NCIB at Investor Day.