SunOpta Inc. (NASDAQ:STKL) Q2 2021 Earnings Conference Call August 11, 2021 9:00 AM ET Company Participants Joe Ennen - Chief Executive Officer Scott Huckins - Chief Financial Officer Conference Call Participants Andrew Strelzik - BMO Jon Andersen - William Blair Alex Fuhrman - Craig-Hallum Capital Mark Smith - Lake Street Capital Operator Good morning. And welcome to SunOptaÂ's Second Quarter Fiscal 2021 Earnings Conference Call. By now everyone should have access to the earnings press release that was iss ...

SunOpta Inc. (NASDAQ:STKL) Q1 2021 Earnings Conference Call May 12, 2021 9:00 AM ET Company Participants Joe Ennen - Chief Executive Officer Scott Huckins - Chief Financial Officer Conference Call Participants Bill Newby - D.A. Davidson Alex Fuhrman - Craig Allen Capital Mark Smith - Lake Street Capital Operator Good morning and welcome to SunOpta's First Quarter Fiscal 2021 Earnings Conference Call. By now, everyone should have access to the earnings press release that was issued this morning and is availa ...

SunOpta Inc. (NASDAQ:STKL) Q4 2020 Results Earnings Conference Call March 3, 2021 9:00 AM ET Company Participants Joseph Ennen - CEO & Director Scott Huckins - CFO Conference Call Participants Brian Holland - D.A. Davidson & Company Alex Fuhrman - Craig-Hallum Capital Jon Anderson - William Blair Mark Smith - Lake Street Operator Good morning and welcome to SunOpta's Fourth Quarter Fiscal 2020 Earnings Conference Call. By now, everyone should have access to the earnings press release that was issued this mo ...

Sunopta, Inc. (NASDAQ:STKL) Q3 2020 Earnings Conference Call October 29, 2020 9:00 AM ET Company Participants Joseph Ennen - CEO & Director Scott Huckins - CFO Conference Call Participants Brian Holland - D.A. Davidson & Co. Ryan Meyers - Lake Street Capital Jon Andersen - William Blair & Company Operator Good morning and welcome to SunOpta's Third Quarter Fiscal 2020 Earnings Conference Call. By now, everyone should have access to the earnings press release that was issued this morning and is available on ...

Financial Data and Key Metrics Changes - The company reported a 6% revenue growth, a 45% increase in gross profit, and a 103% growth in adjusted EBITDA year-over-year [7][24] - Adjusted EBITDA increased to $20.5 million from $10.1 million in the prior year, with an estimated COVID-19 impact of a negative $2 million on adjusted EBITDA [8][27] - Gross profit was $39.7 million for Q2 2020, an increase of $12.4 million compared to $27.3 million in Q2 2019, with a gross margin of 12.8%, up from 9.3% the previous year [24][26] Business Line Data and Key Metrics Changes - The Plant-Based Food and Beverage segment grew 9.6% on an adjusted basis, with a gross margin of 18.2%, an improvement of 340 basis points from the prior year [12][13] - The Fruit-based business unit posted a 0.8% adjusted revenue increase, with gross margin expanding 350 basis points year-over-year [16][26] - The Global Ingredients segment achieved 6.9% adjusted revenue growth and a 300 basis point improvement in gross margin year-over-year [19][20] Market Data and Key Metrics Changes - The company experienced a modest negative impact on total revenue and EBITDA due to COVID-19, estimating a $10 million negative impact on revenue [10][24] - The plant-based business unit demonstrated resilience with strong retail demand, particularly in plant-based beverages and broth, despite challenges in foodservice sales [12][36] Company Strategy and Development Direction - The company is prioritizing investments in the Plant-Based Food and Beverage segment, which is seen as the primary driver of long-term growth [6][22] - Capital projects are on track to expand extraction capabilities, expected to come online in Q4 2020, potentially providing $100 million in additional revenue [15][22] - The company is focusing on operational execution to improve gross margins and create capacity in manufacturing facilities [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future EBITDA growth and the ability to deliver consistent above-average results [6][7] - The company is confident in its strategy and positioning within the plant-based market, citing strong consumer trends driving demand [14][22] - Management acknowledged the challenges posed by COVID-19 but highlighted effective operational management and employee safety as priorities [9][10] Other Important Information - The company generated positive operating cash flow during the quarter, despite typical seasonal investments in working capital [8] - Total debt decreased to $448.9 million, down approximately $20 million from the first quarter and down $42 million from year-end 2019 [28] Q&A Session Summary Question: Pricing dynamics for strawberries and margin stability - Management is in discussions with customers to adjust pricing where possible throughout the third and fourth quarters and into 2021 [34][35] Question: Growth in retail versus foodservice for plant-based beverages - Strong growth was observed in both retail broth and plant-based beverages, with a quicker recovery in foodservice than expected [36] Question: Barriers to entry in the plant-based beverage market - Management highlighted technical manufacturing challenges and long lead times for capital equipment as barriers to entry, impacting competitors' ability to ramp production [37][39] Question: Fruit margins and expectations for the year - Management confirmed expectations to exit the year near a 10% gross margin for the fruit segment, despite challenges in harvest volume [44][45] Question: Capacity expansion and revenue potential - The company aims for full utilization of new capabilities within 24 months, with a strong sales pipeline supporting this goal [52] Question: Margin profile of new product launches - The new arbor fruit bar is expected to be margin accretive to the overall fruit snacks platform, emphasizing innovation in the category [63]

Financial Data and Key Metrics Changes - The company reported revenue of $335.9 million, representing a 13% adjusted revenue growth year-over-year [7] - Adjusted EBITDA for the quarter was $24.3 million, more than doubling from $11.1 million in the prior year [7] - Gross margin improved by nearly 400 basis points compared to the previous year [7] - Operating cash flow generated was $35 million, with total debt reduced by over $20 million from year-end [8] Business Line Data and Key Metrics Changes - The Plant-Based Food and Beverage business unit achieved 29.7% adjusted revenue growth, with significant growth across all primary product categories [10] - The Fruit-Based Food and Beverage business unit saw 9.1% adjusted revenue growth, driven by pricing efforts and strong volume [11] - Global Ingredients delivered 5.5% adjusted revenue growth, with gross margin improvement [11] Market Data and Key Metrics Changes - Approximately two-thirds of sales are in the grocery retail channel, with one-third in food service [12] - The company estimated an incremental revenue of $7 million to $10 million due to COVID-19, with a $3 million gain in gross profit [12] Company Strategy and Development Direction - The company is focusing on high-return opportunities while deemphasizing lower-margin segments [9] - Continued investment in the plant-based business unit is planned, with a total commitment of $60 million from investors [9] - The company is executing a turnaround plan in its fruit business unit, optimizing operations for further success [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to challenges posed by COVID-19, maintaining operational efficiency [12] - The company anticipates a moderation in growth for the plant-based segment in Q2, with total revenue expected to be roughly flat year-over-year [28] - Management expects adjusted EBITDA to be materially greater on a year-over-year basis for the remainder of the year [28] Other Important Information - The company completed a $30 million preferred equity raise, enhancing liquidity and supporting investments in the plant-based business [9] - Cash generated from operating activities was $34.7 million, a significant increase from $1 million in the prior year [25] Q&A Session Summary Question: Insights on plant-based business growth and extraction capacity - Management noted strong growth across all customer segments, with two-thirds of growth from existing customers and one-third from new customers [35] - The extraction capacity is expected to meet significant customer demand, with commitments in place to utilize the new facility [37] Question: Impact of food service on plant-based business - The plant-based business is approximately 60% retail and 40% food service, with optimism about the reopening of food service outlets [39] Question: Fruit availability and pricing - Management indicated that fruit supply is expected to remain within historical ranges, with no concerns regarding pricing [41] Question: Global Ingredients performance and cocoa processing - The Crown of Holland cocoa processing facility has shown improved productivity, contributing to gross margin increases [46] Question: Forward-looking commentary on EBITDA - Management expects meaningful year-over-year EBITDA dollar improvement despite muted growth in Q2 [48]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 2019 was $16.4 million, doubling from $8.2 million in Q4 2018, with a sequential growth from $9.9 million in Q3 2019 [6][27] - Gross profit increased by over 50% year-over-year, reaching $33.4 million in Q4 2019, compared to $21.3 million in Q4 2018 [23] - Total debt decreased by $24.1 million sequentially, totaling $490.7 million at the end of Q4 2019, down from $509.2 million in 2018 [28] Business Line Data and Key Metrics Changes - The plant-based food and beverage segment achieved 25% revenue growth, more than doubling gross profit year-over-year, and improved gross profit margins by 770 basis points [11][25] - The fruit-based food and beverage segment experienced an 11.7% decline in Q4 revenues year-over-year, primarily due to lower revenue from a large foodservice customer [18] - The global ingredients segment saw a 5.7% decline in revenue on an adjusted basis, driven by technical production challenges and competitive pressures [19] Market Data and Key Metrics Changes - The plant-based beverage category is growing at approximately 11% per year, with segments like oat beverages experiencing explosive growth [14] - Plant-based beverages account for about 15% of total milk beverages, indicating a significant market shift towards plant-based options [13] - The broth category has been growing double digits, driven by consumer interest in instant pots and bone broth [55] Company Strategy and Development Direction - The company is focused on expanding its plant-based beverage capabilities, with significant capital investments announced to enhance extraction capabilities [16][17] - A corporate reorganization is expected to reduce SG&A expenses by $8 million to $10 million annually, improving operational efficiency [8] - The company aims to improve the margin and return on capital in the global ingredients segment by reducing exposure to lower-margin businesses [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for solid improvement in 2020, despite challenges faced in the global ingredients segment [7] - The company is cautiously optimistic about the fruit segment's gross margin progression, aiming to exit the year in the low double-digit range [45] - Management noted minimal exposure to the impacts of the coronavirus, primarily due to limited operations in affected regions [30] Other Important Information - The company has realigned its financial reporting structure to better reflect its core business units [10] - The extraction project in Alexandria, Minnesota is expected to come online in mid-Q4 2020, with significant revenue potential [39] Q&A Session Summary Question: Growth drivers in the plant-based food and beverage segment - The majority of the 25% revenue growth was attributed to plant-based beverages, with contributions from existing and new customers, as well as new items [34] Question: Capacity and investment for plant-based beverages - The company has sufficient capacity to support growth in 2020 and has announced additional capacity expansion projects [36] Question: Market growth in the broth category - The broth category has been growing double digits, driven by consumer interest in instant pots and bone broth [55] Question: Progression of gross margin in the fruit segment - The goal is to exit the year with gross margins in the double digits, with positive contributions from automation and improved grower relations [45] Question: Impact of a large foodservice customer on fruit business - The decline related to the large customer is behind the company, with no significant overlap expected in 2020 [48] Question: Roadmap for debt refinancing - The focus for 2020 is to continue improving the business and driving EBITDA, with plans to address the second lien notes in the future [50]

Sunopta, Inc. (NASDAQ:STKL) Q3 2019 Earnings Conference Call November 6, 2019 9:00 AM ET Company Participants Joseph Ennen - CEO & Director Scott Huckins - CFO Conference Call Participants Amit Sharma - BMO Capital Markets Clay Williams - William Blair & Company Christopher Krueger - Lake Street Capital Markets Operator Good morning, and welcome to SunOpta's Third Quarter Fiscal 2019 Earnings Conference Call. By now, everyone should have access to the earnings press release that was issued this morning and ...

SunOpta Inc. (NASDAQ:STKL) Q2 2019 Earnings Conference Call August 7, 2019 9:00 AM ET Company Participants Joe Ennen - CEO Rob McKeracher - VP & CFO Conference Call Participants Amit Sharma - BMO Capital Markets Jon Anderson - William Blair Operator Good morning, and welcome to SunOpta's Second Quarter Fiscal 2019 Earnings Conference Call. By now, everyone should have access to their earnings press release that was issued this morning and is available on the Investor Relations page on SunOpta's website at w ...

SunOpta Inc. (NASDAQ:STKL) Q1 2019 Earnings Conference Call May 8, 2019 9:00 AM ET Company Participants Joe Ennen - CEO Robert McKeracher - VP & CFO Conference Call Participants Amit Sharma - BMO Capital Markets Jon Andersen - William Blair & Company Chris Krueger - Lake Street Capital Markets Operator Good morning and welcome to SunOpta's First Quarter Fiscal 2019 Earnings Conference Call. By now everyone should have access to the earnings press release that was issued this morning and is available on the ...