Players in the Zacks Beverages – Alcohol industry remain under pressure as inflation continues to drive higher costs across labor, transportation and raw materials. Rising ingredient prices, shipping expenses and packaging costs are compressing margins, while elevated spending on marketing, promotions and day-to-day operations is weighing on profitability. Adding to these challenges, tariffs pose a further risk to the U.S. beverage alcohol market by increasing prices for imported brands, softening consumer ...

Core Insights - Lassonde Industries Inc. reported solid sales and profit growth in Q3 2025, with sales reaching $723.9 million, a 55.6 million increase from the previous year, driven by effective pricing strategies and a favorable shift in Canadian private label sales [2][3] Financial Performance - Sales for Q3 2025 were $723.9 million, up 4.8% from $668.3 million in Q3 2024, primarily due to selling price adjustments and a favorable change in the Canadian sales mix of private label products [3][6] - Gross profit increased to $197.6 million, representing 27.3% of sales, up from $179.8 million in the same quarter last year [3][6] - Operating profit rose to $57.9 million, an increase of $10.7 million from the previous year, attributed to higher gross profit and reduced transportation costs [3][6] - Profit attributable to shareholders was $36.8 million, resulting in an EPS of $5.40, a 24.2% increase from the same quarter in 2024 [6][27] Adjusted Financial Metrics - Adjusted EBITDA for Q3 2025 was $86.4 million, up 24.7% from $69.3 million in Q3 2024 [6][24] - Adjusted EPS was $5.84, reflecting a 28.9% increase from $4.53 in the same quarter last year [6][27] Capital Expenditures and Investments - The company is focused on executing its strategy, including capital investment projects, with the relocation of production lines to its North Carolina plant completed [3][6] - Capital expenditures for 2025 are estimated to reach up to 7.0% of sales, depending on project progress and macroeconomic conditions [15][31] Outlook and Market Conditions - Lassonde anticipates a sales growth rate slightly above 10% for 2025, driven by the full-year impact of Summer Garden results and increased U.S. sales volume [7][14] - The company is monitoring consumer food habits and demand elasticity amid ongoing inflation in key commodities [7][14] Dividend Information - A quarterly dividend of $1.10 per share was declared, payable on December 15, 2025, to registered holders of Class A and Class B shares [18][31]