Lassonde Industries (LAS-A) investor relations material

Executive summary

• Operating profit increased 22% year-over-year in Q1 2026 despite lower sales, driven by disciplined pricing, cost stabilization, and strategic product portfolio choices.

• National brands gained market share in both Canada and the U.S., offsetting private label softness and demonstrating portfolio resilience.

• Strategic focus on portfolio optimization, innovation, and efficiency improvements, including investments in new facilities and disciplined execution.

• Continued emphasis on leveraging a strong balance sheet for strategic investments and maintaining disciplined execution.

Financial highlights

• Q1 2026 sales were $664.0M (CAD 664 million), down 5% year-over-year or 2.5% excluding FX, mainly due to lower private label volumes and unfavorable FX.

• Gross profit rose to $188.3M (28.4% of sales), up from $183 million, driven by pricing, sales mix, and lower orange concentrate costs.

• Operating profit was $52.0M, up 22% year-over-year, aided by higher gross profit and lower warehousing costs.

• Adjusted EBITDA was $79.9M (12% of sales), up 12% year-over-year.

• Profit attributable to shareholders was $36.7M (EPS $5.38), up 50% year-over-year; adjusted EPS was $5.36, up 34%.

• Operating cash flow was $71 million, reversing a $60 million outflow last year.

• Dividend of $1.25 per share paid in March 2026.

Outlook and guidance

• Targeting $3B in sales for 2026, prioritizing profitable growth over volume, with balanced contributions from pricing and volume.

• No volume contribution expected from the new New Jersey facility until at least 2028; construction is on schedule for early 2027.

• Guidance assumes a CAD/USD exchange rate of 1.37–1.38 for the remainder of the year and an effective tax rate of 23.5%.

• Capital expenditures for 2026 projected up to 7% of sales, including ~$96M for the new New Jersey plant.

• Outlook assumes no escalation in geopolitical tensions or major supply chain disruptions.