SunOpta Inc. (Nasdaq: STKL, TSX: SOY) announced its financial results for the second quarter of 2024. The company reported a 21% increase in revenue from continuing operations, reaching $171 million, primarily driven by a 26.9% growth in volume.
The company’s adjusted EBITDA for the quarter was $20.6 million, representing a 12% increase compared to the same quarter in the previous year. SunOpta’s supply chain supported a substantial increase in output, continuing its growth trajectory as a manufacturer of organic, non-GMO, and plant-based food products, which are distributed across retail, foodservice, and e-commerce channels.
“We continue to have a high degree of confidence in the longer-term trajectory of our business”
“We are increasing our revenue outlook for 2024 and maintaining our adjusted EBITDA guidance to reflect short-term investments in the supply chain. Given the depth of our pipeline, operational and supply chain initiatives currently underway, and the strength of our overall competitive position, we continue to have a high degree of confidence in the longer-term trajectory of our business and our ability to deliver significant value to shareholders,” states the company to vegconomist.
Second quarter financial highlights
The company experienced significant growth during the second quarter. Revenue climbed to $171 million, a notable increase from the previous year’s $141.2 million, driven by increased volume. This growth contributed to a 17.3% rise in gross profit to $21.8 million.
While the company reported a loss from continuing operations of $3.8 million, this represents a substantial improvement over the $11.7 million loss incurred in the same period last year. Additionally, adjusted earnings from continuing operations and adjusted EBITDA both saw substantial gains, reaching $2.8 million and $20.6 million, respectively.
SunOpta celebrated its 50-year anniversary last year and recently invested $26 million to expand its plant-based beverage production in California, marking the second-largest capital expansion in the company’s history. This investment is expected to increase oat milk production by 60%. Additionally, the company expanded retail distribution, launching SOWN organic oat creamers at Lunds & Byerlys.
For fiscal 2024, SunOpta has raised its revenue outlook, now anticipating revenue between $710 million and $730 million, compared to the previous range of $685 million to $715 million.
CEO Brian Kocher commented, “We delivered another quarter of outstanding growth, reflecting strong underlying demand and solid execution on operational initiatives aimed at sustainable supply chain effectiveness and efficiency. Revenue growth continues to be demand-driven and broad based across customers and channels. Our supply chain supported a significant increase in output and simultaneously highlighted areas where investment is required to deliver sustainable gross margin expansion in the future.”
