Rogers Sugar Reports Strong Results for Fourth Quarter and for Fiscal 2024, Driven by the Contribution of Both Business Segments

Core Insights - Rogers Sugar Inc. reported a consolidated adjusted EBITDA of $38.3 million for Q4 2024 and $141.6 million for the fiscal year, marking a 28% increase from the previous year [3][4] - The company achieved a third consecutive year of improved profitability, driven by strong performance in both the Sugar and Maple segments [2][3] - The LEAP Project, aimed at expanding production and logistics capacity in Eastern Canada, is expected to cost between $280 million and $300 million, reflecting a 40% to 50% increase over initial estimates [4][23] Financial Performance - Consolidated revenues for fiscal 2024 reached $1.2 billion, a 12% increase compared to the previous year, primarily due to higher average pricing in the Sugar segment and increased sales volume in the Maple segment [3][4] - Adjusted net earnings for fiscal 2024 were $66.7 million, or $0.56 per share, compared to $44.5 million, or $0.42 per share, in the previous year [3][4] - Free cash flow for the trailing 12 months was $73.3 million, an increase of $27.6 million from the previous year [4] Segment Performance - In the Sugar segment, adjusted EBITDA for Q4 2024 was $34.2 million, an increase of $10.6 million from the same period last year, despite a 5% decrease in sales volume [3][7] - The Maple segment saw revenues increase by $8.4 million in Q4 2024, driven by improved average selling prices and increased sales volume [14][19] - Adjusted gross margin for the Sugar segment increased to $217 per metric tonne in Q4 2024, up from $156 per metric tonne in the same period last year [9][10] LEAP Project - The LEAP Project is expected to provide approximately 100,000 metric tonnes of incremental refined sugar capacity and is now in the construction phase [21][22] - The project is being funded through a combination of debt, equity, and existing revolving credit facilities, with $53.8 million capitalized as of September 28, 2024 [26][27] - The anticipated completion date for the LEAP Project has been pushed to the end of fiscal 2026, approximately six months later than initially scheduled [24] Outlook - The company expects strong financial performance in 2025, supported by continued demand and pricing strength in the Sugar segment [29][30] - Sales volume for the Sugar segment is projected to reach 800,000 metric tonnes in fiscal 2025, reflecting a year-over-year increase of over 5% [31] - The Maple segment is also expected to show growth, with a moderate increase in sales volume anticipated [39]