SunOpta (US:STKL)2024-08-07 21:07Revenue and Growth - Revenue from continuing operations increased 21.1% to $171 million, driven by 26.9% volume growth, partially offset by a 3.9% price reduction[1] - The company is raising its revenue outlook for fiscal 2024 to a range of $710 million to $730 million, up from the previous outlook of $685 million to $715 million[9] - The company expects revenue growth of 13% to 16% for fiscal 2024, up from the previous expectation of 9% to 13%[9] - Revenues for the quarter ended June 29, 2024, increased to $170,995, up 21.2% from $141,163 for the same quarter in 2023[16] Profitability and Earnings - Adjusted EBITDA from continuing operations increased 11.9% to $20.6 million compared to $18.4 million in the prior year[7] - Gross profit increased 17.3% to $21.8 million, with a gross profit margin of 12.8% compared to 13.2% in the prior year[5] - Operating income was $2.6 million, or 1.5% of revenue, compared to $1.2 million, or 0.8% of revenue in the prior year[6] - Adjusted earnings from continuing operations was $2.8 million, or $0.02 per diluted share, compared to $1.1 million, or $0.01 per diluted share in the prior year[7] - Adjusted earnings from continuing operations for Q2 2024 were $2.841 million, or $0.02 per share, compared to $1.144 million, or $0.01 per share in Q2 2023[26] - For the first two quarters of 2024, adjusted earnings from continuing operations were $4.772 million, or $0.04 per share, compared to $2.938 million, or $0.03 per share in the same period of 2023[30] Losses and Improvements - Loss from continuing operations was $3.8 million, an improvement from a loss of $11.7 million in the prior year[2] - The company reported a loss from continuing operations of $3.781 million in Q2 2024, an improvement from a loss of $11.651 million in Q2 2023[26] - Net loss for the quarter was $4,678, compared to a net loss of $18,838 in the prior year quarter[16] Assets and Liabilities - Total assets as of June 29, 2024, were $704.7 million, with total debt of $303.1 million, compared to total assets of $669.4 million and total debt of $263.2 million at the end of fiscal 2023[8] - Total assets rose to $704,698, up from $669,424 at the end of December 30, 2023[17] - Total current liabilities decreased to $148,602 from $154,400 at the end of December 30, 2023[17] Cash Flow and Expenses - Cash and cash equivalents increased to $3,190 from $306 at the end of December 30, 2023[17] - The company reported a net cash provided by operating activities of continuing operations of $2,013, compared to $17,468 in the prior year[18] - Interest expense for Q2 2024 was $6.410 million, slightly down from $6.565 million in Q2 2023[27] Start-up Costs and Product Withdrawal - In Q2 2024, the company incurred start-up costs of $3.8 million, compared to $5.8 million in Q2 2023, primarily related to plant expansion and new product introductions[22] - The company recognized direct costs of $2.1 million related to a voluntary product withdrawal in Q2 2024, which negatively impacted gross profit and gross margin[23] - Total start-up costs for the first two quarters of 2024 were $4.101 million, down from $13.122 million in the same period of 2023[31] - The company completed corrective actions related to the product withdrawal, which had a significant unfavorable impact on reported financials for Q2 2024[23] Foreign Exchange and Other Impacts - The company experienced an unrealized foreign exchange loss of $838,000 in Q2 2024 related to peso-denominated bank accounts in Mexico[32]