Rogers Sugar Delivers Strong First Quarter Results, Driven by Solid Performance from Both Maple and Sugar Segments

Core Insights - Rogers Sugar Inc. reported strong first quarter fiscal 2025 results, with consolidated adjusted EBITDA increasing by 29% to $39.6 million [1][3] - The company achieved profitable growth in both Sugar and Maple segments, driven by higher revenues, margins, and free cash flow [2][3] Financial Performance - Consolidated revenues for Q1 2025 were $323.2 million, a 12% increase from $288.7 million in Q1 2024, primarily due to higher average pricing and increased sales volumes [3][7] - Adjusted net earnings for Q1 2025 were $19.5 million or $0.15 per share, compared to $12.6 million or $0.12 per share in the same period last year [3][10] - Free cash flow for the trailing twelve months ended December 28, 2024, was $86.2 million, an increase of $41.9 million from the previous year [3][10] Sugar Segment Highlights - Sugar segment revenues increased to $256.8 million in Q1 2025 from $229.8 million in Q1 2024, with adjusted EBITDA rising by $7.9 million [5][9] - Sales volumes in the Sugar segment reached 196,100 metric tonnes, up 13,700 metric tonnes from the previous year, recovering from prior labor disruptions [7][11] - Adjusted gross margin for the Sugar segment was $44.1 million, an increase of $7.9 million year-over-year, driven by higher sales volumes and improved performance [9][12] Maple Segment Highlights - Maple segment revenues rose to $66.4 million in Q1 2025 from $58.9 million in Q1 2024, with adjusted EBITDA increasing to $5.7 million [15][18] - Total sales volume for the Maple segment was 13,400 thousand pounds, reflecting a strong recovery from the previous year [15][16] - Adjusted gross margin percentage for the Maple segment improved to 11.5% from 10.3% year-over-year, indicating better operational efficiency [18][34] LEAP Project - The LEAP Project aims to add approximately 100,000 metric tonnes of refined sugar capacity, with a total estimated cost between $280 million and $300 million [19][21] - As of December 28, 2024, $73.5 million has been capitalized for the LEAP Project, with $19.7 million spent in Q1 2025 [22][21] - The project is expected to be operational by the end of 2026, enhancing the company's logistics and refining capabilities [19][20] Outlook - The company anticipates continued strong performance in both Sugar and Maple segments for fiscal 2025, despite potential adverse impacts from US tariffs [24][25] - Sales volume for the Sugar segment is expected to reach approximately 800,000 metric tonnes, representing over 5% growth year-over-year [28][27] - The Maple segment is projected to grow by approximately 5% in sales volume, supported by a strong 2024 crop [34][35]