SunOpta Inc ( (STKL) ) has released its Q4 earnings. Here is a breakdown of the information SunOpta Inc presented to its investors.
SunOpta Inc., a leading manufacturer in the food industry, is known for its innovative and sustainable production of organic, plant-based beverages, fruit snacks, and other nutritional products. The company operates across various channels, including retail, foodservice, and e-commerce, and also produces its own brands like Sown, Dream, and West Life.
In its latest earnings report for the fourth quarter of 2024, SunOpta reported a 9% increase in revenue from continuing operations, reaching $193.9 million. Despite this growth, the company experienced a loss from continuing operations amounting to $4.6 million, compared to a $3.0 million loss in the previous year. However, the adjusted EBITDA saw a significant rise of 20%, reaching $26.1 million, indicating improved operational efficiency.
Key highlights from the report include a strong free cash flow, which enabled a $24.7 million reduction in debt, achieving a leverage target of 3.0x. The company’s revenue growth was primarily driven by a 12.8% increase in volume, although this was partially offset by a 2.1% reduction in prices due to commodity cost pass-throughs. Additionally, SunOpta’s gross profit decreased by 15.4% to $21.2 million, with a gross profit margin of 10.9%.
Looking forward, SunOpta’s management remains optimistic about 2025, expecting continued strong growth in revenue and adjusted EBITDA. The company plans to leverage its competitive strengths to expand market share and maintain a disciplined financial approach to enhance gross margins and generate significant free cash flow, with no major capital investments anticipated in the near future.