Rogers Sugar Reports Strong Third Quarter Results with Robust Demand from Sugar and Maple Segments

Core Insights - Rogers Sugar Inc. reported strong financial results for Q3 and the first nine months of fiscal 2025, with consolidated adjusted EBITDA rising to $36.6 million, driven by robust performance in the Maple and Sugar segments [1][2][24] Financial Performance - Q3 2025 revenues reached $313.8 million, a slight increase from $309.1 million in Q3 2024, while year-to-date revenues were $963.2 million compared to $898.7 million in the previous year [2][4] - Gross margin for Q3 2025 was $48.5 million, up from $36.6 million in Q3 2024, with adjusted gross margin increasing to $52.0 million from $47.7 million [2][4][7] - Net earnings for Q3 2025 were $14.4 million, compared to $7.4 million in Q3 2024, with adjusted net earnings at $17.0 million versus $16.3 million [2][4][11] Segment Performance Sugar Segment - Adjusted EBITDA for the Sugar segment was $32.5 million in Q3 2025, an increase of $2.4 million from the previous year, attributed to higher sales volume and improved adjusted gross margin [2][10] - Sugar revenues decreased to $246.3 million in Q3 2025 from $252.5 million in Q3 2024, primarily due to lower average prices for Raw 11 [5][6] - Sales volumes in the Sugar segment were approximately 191,100 metric tonnes, reflecting a 3% increase compared to the same quarter last year [6][10] Maple Segment - The Maple segment reported revenues of $67.5 million in Q3 2025, up from $56.6 million in Q3 2024, driven by higher sales volume [11][12] - Adjusted EBITDA for the Maple segment decreased to $4.0 million from $4.4 million in the same quarter last year, mainly due to an unfavorable customer mix [11][17] - Total volume for the Maple segment was 13,796 thousand pounds, an increase from 11,392 thousand pounds in Q3 2024 [11][12] LEAP Project - The LEAP Project aims to add approximately 100,000 metric tonnes of refined sugar capacity, with total costs expected between $280 million and $300 million, anticipated to be operational by the end of 2026 [18][21] - As of June 28, 2025, $115.2 million has been capitalized for the LEAP Project, with $30.3 million spent on property, plant, and equipment in Q3 2025 [22][27] Outlook - The company expects continued strong performance in both the Sugar and Maple segments for fiscal 2025, despite potential adverse impacts from US tariffs [24][26][32] - The Sugar segment's sales volume outlook remains at 785,000 metric tonnes for fiscal 2025, reflecting a 1% year-over-year increase [26] - The Maple segment anticipates a sales volume growth of approximately 6.5% in 2025, contingent on market conditions and syrup availability [32][33]