Canada Packers Inc. Reports First Quarter 2026 Financial Results
Posts Solid Q1 2026 Results
Performance Driven by Strong Execution and Resilient Profitability
TSX:CPKR
www.canadapackers.com
MISSISSAUGA, ON, April 30, 2026 /CNW/ - Canada Packers Inc. ("Canada Packers" or the "Company") (TSX: CPKR) today reported its financial results for the 13-week period ended March 28, 2026.
First Quarter Highlights
- Sales of $428.3 million. Prior year Q1 sales of $452.0 included operations that were not acquired by the Company in connection with the spin-off from Maple Leaf Foods.
- Adjusted EBITDA(ii) of $42.1 million is consistent with Q1 2025's pro-forma Adjusted EBITDA(i) of $44 million, as strong operating performance and increased hog volumes were offset by foreign exchange headwinds in the quarter.
- Adjusted EBITDA Margin(ii) was 9.8%, squarely within the Company's typical operating range of 8% - 12%, compared to estimated pro-forma Adjusted EBITDA Margin(i) of 10.3% for Q1 2025.
- Adjusted EPS(ii) of $0.54. Adjusted EPS in 2025 of $0.89 does not reflect the impacts of stand-alone costs incurred in 2026.
- Net Debt(ii) was $428.6 million ($340.3 million excluding lease obligations), resulting in a leverage ratio of 2.3x (1.8x excluding lease obligations) based on trailing twelve months pro forma Adjusted EBITDA(i).
(i) For more information, see "Management's Pro Forma Estimates and Related Non-IFRS Measures" section of this news release. |
(ii) Refer to the section titled Non-IFRS Financial Measures in this news release. |
Executive Commentary
"We delivered strong first quarter 2026 operating results, with solid operating performance largely offsetting year-over-year currency headwinds," said Dennis Organ, President and Chief Executive Officer, Canada Packers. "Our premium, diversified product mix and global customer base, combined with disciplined execution, allowed us to grow volumes and deliver Adjusted EBITDA within our target range. This performance reflects the durability of our business and positions us well to continue delivering value for shareholders."
Quarterly Dividend
On April 29, 2026, the Board of Directors approved a quarterly dividend of $0.23 per share, ($0.92 per share on an annual basis), payable on June 30, 2026, to shareholders of record at the close of business on June 9, 2026. The dividend will be considered an eligible dividend for the purposes of the Enhanced Dividend Tax Credit System.
Historical 2025 periods presented exclude certain "standalone" and financing costs
Until July 28, 2025, the Company's earnings included costs allocated by its then-parent, Maple Leaf Foods Inc.("Maple Leaf Foods"). Those allocated costs were less than the contractual service costs and other estimated costs that the Company expected to incur as a public reporting entity. Management's estimates of the impact on those costs on Adjusted EBITDA are presented in "Management's Pro Forma Estimates and Related Non-IFRS Measures", below.
RESULTS OF OPERATIONS
Results for the 13-week periods ended March 28, 2026 and March 29, 2025
The following table sets out selected financial and operating data of Canada Packers for the periods presented.
13-week period ended |
||||||
(in millions of Canadian dollars except margin % and per share amounts)(i) (Unaudited) |
March 28, 2026 |
March 29, 2025 |
% Change(ii) |
|||
Sales |
$ |
428.3 |
$ |
452.0 |
(5.2) % |
|
Cost of goods sold |
335.4 |
382.7 |
(12.4) % |
|||
Gross profit |
$ |
92.9 |
$ |
69.3 |
34.1 % |
|
Selling, general and administrative expenses |
24.3 |
18.2 |
33.3 % |
|||
Earnings before the following: |
$ |
68.7 |
$ |
51.1 |
34.4 % |
|
Other expenses |
1.9 |
3.1 |
(40.3) % |
|||
Earnings before interest and income taxes |
$ |
66.8 |
$ |
48.0 |
39.3 % |
|
Interest expense |
7.1 |
1.2 |
nm |
|||
Earnings before income taxes |
$ |
59.7 |
$ |
46.8 |
27.6 % |
|
Income tax expense |
15.9 |
12.7 |
25.6 % |
|||
Earnings |
$ |
43.8 |
$ |
34.1 |
28.3 % |
|
Earnings Margin(iii)(iv) |
10.2 % |
7.6 % |
2.6 % |
|||
Earnings per Share |
||||||
Basic |
$ |
1.47 |
$ |
1.15 |
27.8 % |
|
Diluted |
$ |
1.46 |
$ |
1.15 |
27.0 % |
|
Adjusted Operating Earnings(iii) |
$ |
29.8 |
$ |
38.2 |
(22.0) % |
|
Adjusted EBITDA(iii) |
$ |
42.1 |
$ |
49.6 |
(15.1) % |
|
Adjusted EBITDA Margin(iii)(iv) |
9.8 % |
11.0 % |
(1.2) % |
|||
Adjusted EBT(iii) |
$ |
22.2 |
$ |
36.4 |
(38.9) % |
|
Adjusted Earnings per Share(iii) |
$ |
0.54 |
$ |
0.89 |
(39.3) % |
|
Hogs processed (in thousands)(v) |
1,074 |
1,053 |
2.0 % |
|||
Internally sourced - %(iv) |
48.7 % |
45.5 % |
3.2 % |
|||
Externally sourced - %(iv) |
51.3 % |
54.5 % |
(3.2) % |
|||
(i) |
Totals may not add due to rounding. |
(ii) |
"nm" indicates "not meaningful" where percentage changes are not considered informative. |
(iii) |
Represents a non-IFRS measure. For more information, see the Non-IFRS Financial Measures section elsewhere in this document. |
(iv) |
Changes in percentage amounts are calculated as 2026 value less 2025 value. |
(v) |
Represents a supplemental operational measure. |
Results for the 13-week period ended March 28, 2026
Sales for the first quarter of 2026 decreased 5.2% to $428.3 million compared to $452.0 million for the first quarter of 2025. The change in sales is primarily due to the net impact of ham boning operations remaining with Maple Leaf Foods as described in "The Spin Off" in the Management's Discussion and Analysis, and lower USD and JPY, which was offset by higher hog volumes.
Gross profit for the first quarter of 2026 was $92.9 million (21.7% of sales) compared to $69.3 million (15.3% of sales) in 2025. Of the $23.6 million increase in gross profit, $21.1 million was due to the non-cash fair value changes in biological assets, which increased gross profit by $37.5 million in the first quarter of 2026, compared to an increase of $16.4 million in the first quarter of 2025. These amounts are excluded in the calculation of Adjusted Operating Earnings, Adjusted EBITDA and Adjusted EBT. Gross profit of our premium value-added pork products was positively impacted by increased hog volumes, on-farm and supply chain performance, partially offset by lower market impacts tied to currency, and the impact of the removal of ham boning.
SG&A expenses for the first quarter of 2026 were $24.3 million (5.7% of sales), compared to $18.2 million (4.0% of sales) last year. The increase primarily reflects costs incurred under the Long-Term Services Agreement and Supply Agreement as well other costs associated with being a standalone public entity.
Interest expense for the first quarter of 2026 was $7.1 million, compared to $1.2 million for the corresponding period in 2025. The increase is due primarily to the interest associated with new borrowings under the Company's term loan of up to $415.0 million entered into on October 1, 2025.
Canada Packers' income tax expense for the first quarter of 2026 resulted in an effective tax rate of 26.7%. This effective tax rate differs from the 2026 Canadian statutory tax rate of 26.3% primarily due to non-deductible expenses and income earned in other jurisdictions. Canada Packers' income tax expense for the first quarter of 2025 resulted in an effective tax rate of 27.1%, which differs from the 2025 Canadian statutory tax rate of 26.4% primarily due to non-deductible expenses and income earned in other jurisdictions.
Earnings for the first quarter of 2026 were $43.8 million compared to $34.1 million in 2025. The change in earnings is due to the factors outlined above for gross profit and SG&A.
Earnings margin for the first quarter of 2026 was 10.2% compared to 7.6% in 2025. The change in margin is consistent with the factors noted above for earnings.
Adjusted Operating Earnings for the first quarter of 2026 were $29.8 million compared to $38.2 million in 2025 due to similar factors as noted above for gross profit and SG&A, excluding the change in fair value of biological assets and derivatives, which are not included in the calculation of Adjusted Operating Earnings.
Adjusted EBITDA for the first quarter of 2026 was $42.1 million compared to $49.6 million in 2025 due to similar factors as noted above for Adjusted Operating Earnings.
Adjusted EBITDA margin for the first quarter of 2026 was 9.8% compared to 11.0% in 2025. The change in margin is consistent with the factors noted above for Adjusted EBITDA.
Adjusted EBT for the first quarter of 2026 was $22.2 million compared to $36.4 million in 2025. The factors impacting Adjusted EBT in the first quarter of 2026 are similar to the factors noted above for Adjusted EBITDA including the impact of depreciation and interest expense.
NON-IFRS FINANCIAL MEASURES
Canada Packers uses the following non-IFRS measures: Adjusted Operating Earnings, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBT, Net Debt, Net Debt to Trailing Twelve Months Adjusted EBITDA, Adjusted Earnings per Share ("EPS"), Free Cash Flow, Adjusted Free Cash Flow, Earnings Margin, and Return on Net Assets ("RONA"). Management believes that these non-IFRS measures provide useful information to investors in measuring the financial performance of Canada Packers. These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other publicly-traded companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS.
Adjusted Operating Earnings, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBT and Earnings Margin
Adjusted Operating Earnings, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted EBT are non-IFRS measures used by management to evaluate financial operating results. Adjusted Operating Earnings is defined as earnings before income taxes adjusted for items that are not considered representative of ongoing operational activities of the business and items where the economic impact of the transactions will be reflected in earnings in future periods when the underlying asset is sold or transferred. Adjusted EBITDA is defined as Adjusted Operating Earnings plus depreciation and amortization, adjusted for items included in other expense that are considered representative of ongoing operational activities of the business. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by sales. Adjusted EBT is used annually by Canada Packers to evaluate its performance and is a component of calculating bonus entitlements under the Company's short-term incentive plan. It is defined as Adjusted EBITDA less depreciation and amortization and interest expense and income. Earnings Margin is calculated as earnings determined in accordance with IFRS, divided by sales.
The table below provides a reconciliation of earnings before income taxes as reported under IFRS in the Company's unaudited Condensed Consolidated Interim Financial Statements to Adjusted Operating Earnings, Adjusted EBITDA and Adjusted EBT for the periods ended as indicated below. Management believes that these non-IFRS measures are useful in assessing the performance of Canada Packers ongoing operations and its ability to generate cash flows to fund its cash requirements.
13-week period ended March 28, |
||
($ millions except margin)(i) |
March 28, 2026 |
March 29, 2025 |
Earnings before income taxes |
$ 59.7 |
$ 46.8 |
Interest expense |
7.1 |
1.2 |
Other expense(ii) |
1.9 |
3.1 |
Earnings from operations |
$ 68.7 |
$ 51.1 |
Increase in fair value of biological assets(iii) |
(37.5) |
(16.4) |
Change in unrealized loss (gain) on derivative contracts(iv) |
(1.4) |
3.5 |
Adjusted Operating Earnings |
$ 29.8 |
$ 38.2 |
Depreciation and amortization |
13.1 |
12.1 |
Items included in other expense representative of ongoing operations(v) |
(0.7) |
(0.6) |
Adjusted EBITDA |
$ 42.1 |
$ 49.6 |
Adjusted EBITDA margin |
9.8 % |
11.0 % |
Interest expense |
(7.1) |
(1.2) |
Interest income |
0.2 |
-- |
Depreciation and amortization |
(13.1) |
(12.1) |
Adjusted EBT |
$ 22.2 |
$ 36.4 |
Earnings Margin |
10.2 % |
7.6 % |
(i) |
Totals may not add due to rounding. |
(ii) |
Other expense primarily consists of Spin-Off costs allocated to Canada Packers and certain costs associated with sustainability projects. |
(iii) |
Refer to Note 5 of the Company's unaudited Condensed Consolidated Interim Financial Statements for further details regarding biological assets. |
(iv) |
Changes in unrealized losses and gains on derivative contracts are reported within cost of goods sold in the Company's unaudited Condensed Consolidated Interim Financial Statements. |
(v) |
These items primarily consist of activities that management believes to be representative of the ongoing operations of Canada Packers such as gains and losses on the sales of fixed assets or lease modifications as well as certain costs associated with sustainability projects. |
Adjusted Earnings per Share
Adjusted Earnings per Share, a non-IFRS measure, is used by Management to evaluate financial operating results. It is defined as basic earnings per share and is adjusted on the same basis as Adjusted Operating Earnings, net of income taxes. The table below provides a reconciliation of basic earnings per share as reported under IFRS in the Company's unaudited Condensed Consolidated Interim Financial Statements to Adjusted Earnings per Share for the periods indicated. Management believes this basis is the most appropriate on which to evaluate financial results as they are representative of the ongoing operations of the Company.
13-week period ended |
||
($ millions) |
March 28, 2026 |
March 29, 2025 |
Basic Earnings Per Share |
$ 1.47 |
$ 1.15 |
Items included in other income not considered representative of ongoing operations |
0.03 |
0.07 |
Increase in fair value of biological assets |
(0.93) |
(0.41) |
Change in unrealized loss (gain) on derivative contracts |
(0.04) |
0.08 |
Adjusted Earnings per Share |
$ 0.54 |
$ 0.89 |
Free Cash Flow and Adjusted Free Cash Flow
Free Cash Flow and Adjusted Free Cash Flow are non-IFRS measures used by management to evaluate cash flow after investing in the Company's asset base. Free Cash Flow is defined as cash provided by operating activities, less additions to long-term assets. Adjusted Free Cash Flow is defined as Free Cash Flow modified to exclude changes in non-cash operating working capital. The following table calculates Free Cash Flow and Adjusted Free Cash Flow for the periods indicated.
13-week period ended |
||
($ millions) |
March 28, 2026 |
March 29, 2025 |
Cash flow provided by operating activities |
$ 20.1 |
$ 39.6 |
Additions to long-term assets |
(5.3) |
(7.9) |
Free Cash Flow |
$ 14.8 |
$ 31.7 |
Changes in non-cash operating working capital |
12.4 |
7.2 |
Adjusted Free Cash Flow |
$ 27.2 |
$ 38.9 |
Net Debt
The following table reconciles Net Debt to amounts reported under IFRS in the Company's unaudited Condensed Consolidated Interim Financial Statements and calculates the Net Debt to Adjusted EBITDA ratio as at March 28, 2026, as shown below. The Company calculates Net Debt as long-term debt and bank indebtedness less cash, and calculates Net Debt to Adjusted EBITDA as Net Debt divided by Adjusted EBITDA. Management believes these measures are useful in assessing the amount of financial leverage employed.
($ millions except Net Debt to Trailing Twelve Months Adjusted EBITDA) |
As at March 28, 2026 |
Cash |
$ 46.0 |
Long-term debt |
$ 386.3 |
Net Debt |
$ 340.3 |
Trailing Twelve Months Adjusted EBITDA |
$ 200.1 |
Net Debt to Trailing Twelve Months Adjusted EBITDA |
1.7 |
Net Debt, including lease obligations: |
|
Net Debt |
$ 340.3 |
Lease obligations |
$ 88.3 |
Net Debt, including lease obligations |
$ 428.6 |
Trailing Twelve Months Adjusted EBITDA |
$ 200.1 |
Net Debt, including lease obligations, to Trailing Twelve Months Adjusted EBITDA |
2.1 |
Management's Pro Forma Estimates and Related Non-IFRS Measures
The following table presents management's pro forma estimates of certain financial information regarding Canada Packers. These estimates have not been audited or reviewed by any third party, have been derived from internal management reporting, and reflect sales, cost and expense allocations, including with respect to corporate expenses, as well as other estimates and adjustments.
Quarter Ended |
Trailing Twelve |
|||||||||||
($ millions) (unaudited) |
March 29, |
June 28, |
September 27, |
December 27, |
March 28, |
March 28, |
||||||
Pro Forma |
Pro Forma |
Pro Forma |
Actual |
Actual |
||||||||
Sales (IFRS) |
$ |
452 |
$ |
473 |
$ |
482 |
$ |
429 |
$ |
428 |
$ |
1,812 |
Estimate of potential impact of separation(i) |
$ |
(21) |
$ |
(17) |
$ |
(6) |
$ |
-- |
$ |
-- |
$ |
(23) |
Pro Forma Sales |
$ |
431 |
$ |
456 |
$ |
476 |
$ |
429 |
$ |
428 |
$ |
1,789 |
Adjusted EBITDA(ii) |
$ |
50 |
$ |
51 |
$ |
60 |
$ |
46 |
$ |
42 |
$ |
199 |
Adjusted EBITDA Margin(ii) |
11.0 % |
10.9 % |
12.5 % |
10.8 % |
9.8 % |
11.0 % |
||||||
Estimate of impact of separation(iii) |
$ |
(6) |
$ |
(6) |
$ |
(4) |
$ |
-- |
$ |
-- |
$ |
(10) |
Pro Forma Adjusted EBITDA(iv) |
$ |
44 |
$ |
45 |
$ |
56 |
$ |
46 |
$ |
42 |
$ |
189 |
Pro Forma Adjusted EBITDA margin(v) |
10.3 % |
9.8 % |
11.8 % |
10.8 % |
9.8 % |
10.6 % |
||||||
Net Debt to Trailing Twelve Months Pro Forma |
1.8 |
|||||||||||
Net Debt, including lease obligations, to Trailing |
2.3 |
|||||||||||
(i) |
Management's preliminary estimate of the potential impact on sales if the separation had occurred before the beginning of the period shown. Primarily relates to management's preliminary estimate of the change in sales as a result of the potential impact of the Supply Agreement and other contractual arrangements, (as if those had been in effect during the periods presented). |
(ii) |
Represents a non-IFRS measure. For more information, see "Non-IFRS Financial Measures" in this news release. For a reconciliation of Adjusted EBITDA to earnings before income taxes, refer to the management information circular of Maple Leaf Foods dated May 1, 2025 and filed on Maple Leaf Foods' SEDAR+ profile on May 12, 2025. |
(iii) |
Management's preliminary estimate of the potential impact on Adjusted EBITDA if the separation had occurred before the beginning of the period shown. Primarily relates to management's preliminary estimate of (1) a change in Adjusted EBITDA of Canada Packers as a result of the potential impact of the supply agreement and other contractual arrangements (as if those had been in effect during the periods presented), (2) public company costs that would have been incurred by Canada Packers, and (3) a reallocation of certain SG&A expenses. |
(iv) |
Defined as Adjusted EBITDA plus management's preliminary estimate of the potential impact of the separation, and subject to the qualifications described in (iii) above. |
(v) |
Defined as Pro Forma Adjusted EBITDA, as described in (iv) above, divided by Pro Forma Sales. |
Selected 2026 results compared to pro-forma estimates for 2025 are as follows:
($ millions) (unaudited) |
March 28, 2026 |
March 29, 2025 |
% Change |
Actual |
Pro Forma |
||
Sales |
$ 428 |
$ 431 |
(0.6) % |
Adjusted EBITDA |
$ 42 |
$ 44 |
(4.3) % |
Adjusted EBITDA Margin |
9.8 % |
10.3 % |
(0.5) % |
The following table reconciles Net Debt to amounts reported under IFRS in the Company's unaudited Condensed Consolidated Interim Financial Statements and calculates the Net Debt to Pro Forma Adjusted EBITDA ratio as at March 28, 2026, as indicated below. The Company calculates Net Debt as long-term debt and bank indebtedness less cash, and calculates Net Debt to Pro Forma Adjusted EBITDA as the absolute value of Net Debt divided by Pro Forma Adjusted EBITDA. Management believes these measures are useful in assessing the amount of financial leverage employed.
($ millions except Net Debt to Trailing Twelve Months Pro Forma Adjusted EBITDA) |
As at March 28, 2026 |
Cash |
$ 46.0 |
Long-term debt |
$ 386.3 |
Net Debt |
$ 340.3 |
Trailing Twelve Months Pro Forma Adjusted EBITDA |
$ 189.1 |
Net Debt to Trailing Twelve Months Pro Forma Adjusted EBITDA |
1.8 |
Net Debt, including lease obligations: |
|
Net Debt |
$ 340.3 |
Lease obligations |
$ 88.3 |
Net Debt, including lease obligations |
$ 428.6 |
Trailing Twelve Months Pro Forma Adjusted EBITDA |
$ 189.1 |
Net Debt, including lease obligations, to Trailing Twelve Months Pro Forma Adjusted EBITDA |
2.3 |
The Company's unaudited Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis for the 13-week period ended March 28, 2026 are available on SEDAR+ and on the Company's website at canadapackers.com.
Canada Packers First Quarter 2026 Earnings Conference Webcast:
What: |
Canada Packers Q1 2026 Earnings Conference Call |
Who: |
Dennis Organ, President and Chief Executive Officer |
Deepak Bhandari, Chief Financial Officer |
|
When: |
April 30, 2026 at 8:00 am ET |
Call Details: |
Please click here to register for the webcast |
To participate via conference call, please dial-in 647-932-3411 or 1-800-715-9871. All dial-in participants should ask to join the Canada Packers call. To join the conference call without operator assistance, you may register at the following link: https://registrations.events/easyconnect/6445752/recViU40zi8uBkbgq/. For those unable to participate at the scheduled time, playback will be made available within two hours after the event at 647-362-9199 or 1-800-770-2030, entry code: 6445752 #.
Within 48 hours following the event, the webcast replay will be archived and available on the Company's website at canadapackers.com/investors/events-and-presentations/.
About Canada Packers
Canada Packers (TSX: CPKR) is one of North America's largest producers of raised without antibiotics (RWA) pork and is committed to its vision to be the global standard in sustainable pork. Headquartered in Mississauga, Ontario, Canada Packers delivers a premium mix of products to a diverse mix of customers in North America and across the globe through representative offices in China, South Korea, Japan, and the Philippines. The Company's integrated operations span hog production, processing, and value-added innovation. Proudly raised; Responsibly made.
Forward-looking statements
This document contains, and the Company's oral and written public communications often contain, "forward-looking information" within the meaning of applicable securities law. These statements are based on current expectations, estimates, projections, beliefs, judgments and assumptions based on information available at the time the applicable forward-looking statement was made and in light of the Company's experience combined with its perception of historical trends. Such statements include, but are not limited to, statements with respect to objectives and goals, in addition to statements with respect to beliefs, plans, targets, goals, objectives, expectations, anticipations, estimates, and intentions. Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "could", "would", "believe", "plan", "intend", "design", "target", "undertake", "view", "indicate", "maintain", "explore", "entail", "schedule", "objective", "strategy", "likely", "potential", "outlook", "aim", "propose", "goal", and similar expressions suggesting future events or future performance. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes the expectations reflected in the forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.
Specific forward-looking information in this document may include, but is not limited to, statements with respect to the operating capacity of the processing facilities; expected sales channels; expected future cash flows, the sufficiency thereof, sources of capital at attractive rates, future contractual obligations, future financing options, renewal of credit facilities, compliance with credit facility covenants, and availability of capital to fund growth plans including the Canada Packers capital investment program, operating obligations and dividends; the anticipated future financial performance of the Company; implications associated with the spread of foreign animal disease (such as African Swine Fever); operating risks, including the execution, monitoring and continuous improvement of the Company's food safety programs, animal health initiatives, cost reduction initiatives, and service levels; the impact of commodity prices and foreign exchange impacts on the Company's operations and financial performance, including the use and effectiveness of hedging instruments; the amount and timing of dividend payments including the tax treatment thereof; the adoption of new accounting standards and the impact of such adoption on the financial position of the Company; and competitive conditions and the Company's ability to position itself competitively in the markets in which it competes; and the timing of the release of financial results, conference call, and replay of the conference call.
Various factors or assumptions are typically applied by the Company in drawing conclusions or making the forecasts, projections, predictions or estimations set out in the forward-looking statements. These factors and assumptions are based on information currently available to the Company, including information obtained by the Company from third-party sources and include but are not limited to, expectations regarding the adaptations in operations, supply chain, customer and consumer behaviour, economic patterns (including but not limited to global pork markets), energy costs and availability, foreign exchange rates, tariffs and other international trade dynamics, access to capital, and potential structural changes in global economic patterns; the competitive environment, associated market conditions (including tariffs) and market share metrics, category growth or contraction, the expected behaviour of competitors and customers and trends in consumer preferences; the success of the Company's business strategy and the relationship between pricing, inflation, volume and sales of the Company's products; prevailing commodity prices, implications of tariffs, interest rates, tax rates and exchange rates; the economic condition of and the sociopolitical dynamics between Canada, the U.S., Japan and China, and the ability of the Company to access markets and source ingredients and other inputs in light of global sociopolitical disruption, and the ongoing impact of global conflicts on inflation, trade and markets, including the conflict in the Middle East and related disruptions to global energy markets, supply chains and transportation costs; the spread of foreign animal disease (including African Swine Fever) preparedness strategies to manage such spread, and implications for the global pork market; availability of and access to capital to fund future capital requirements and ongoing operations; prevailing regulatory, tax and environmental laws; and future operating costs and performance, including the Company's ability to achieve operating efficiencies and maintain sales volumes, turnover of inventories and turnover of accounts receivable.
Readers are cautioned that the assumptions on which this information is based may prove to be incorrect in whole or in part, and actual outcomes may differ materially from those anticipated in any forward-looking statements.
Factors that could cause actual results or outcomes to differ materially from the results expressed, implied, or projected in the forward-looking statements contained in this document include, among other things, risks associated with, the results of Canada Packers' execution of its business plan, the degree to which benefits are realized or not and the timing to realize those benefits, including the implications on the financial results; potential structural changes in global economic patterns which may have implications for the operations and financial performance of the Company, as well the ongoing implications for macro socio-economic trends, trade action and global conflict; macro-economic trends, including inflation, consumer behaviour, recessionary indicators, labour availability and labour market dynamics and international trade trends, including tariffs, duties and global pork markets; competition, market conditions, and the activities of competitors and customers, including the expansion or contraction of key categories, inflationary pressures, pork market dynamics and Japan export margins; the health status of livestock, including the impact of potential pandemics; international trade and access to markets and supplies, as well as social, political and economic dynamics, including global conflicts and related energy market disruptions; operating performance, including manufacturing operating levels, fill rates and penalties; availability of and access to capital, and compliance with credit facility covenants; decisions respecting the return of capital to shareholders; the execution of capital projects and investment in maintenance capital; food safety, consumer liability and product recalls; climate change, climate regulation and the Company's sustainability performance; strategic risk management; acquisitions and divestitures; fluctuations in the debt and equity markets; fluctuations in interest rates and currency exchange rates; cyclical nature of the cost and supply of hogs and the competitive nature of the pork market generally; the effectiveness of commodity and interest rate hedging strategies; impact of changes in the market value of the biological assets and hedging instruments; intellectual property, including product innovation, product development, brand strategy and trademark protection; reputation; weather; compliance with government regulation and adapting to changes in laws; actual and threatened legal claims; consumer trends and changes in consumer tastes and buying patterns; environmental regulation and potential environmental liabilities; employment matters, including complying with employment laws across multiple jurisdictions, the potential for work stoppages due to non-renewal of collective agreements, recruiting and retaining qualified personnel, reliance on key personnel and succession planning; pricing of products; managing the Company's supply chain; changes in International Financial Reporting Standards and other accounting standards that the Company is required to adhere to for regulatory purposes; logistical considerations outside of our control; and other factors as set out under the heading "Risk Factors" of the Management Information Circular dated March 13, 2026, filed on SEDAR+ on March 26, 2026. The Company cautions readers that the foregoing list of factors is not exhaustive.
All forward-looking statements included herein speak only as of the date hereof. Unless required by law, the Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements contained herein are expressly qualified by this cautionary statement.
SOURCE Canada Packers Inc.
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