Lassonde Industries (LAS-A) investor relations material

Executive summary

• Achieved 16% gross profit growth in Q2 2026, driven by effective revenue management, improved product mix, moderating input costs, and strong execution despite macroeconomic uncertainty and tough prior-year comparisons.

• U.S. beverage operations grew volumes and gained share despite category declines, aided by distribution gains and targeted investments in single-serve and juice box formats.

• Canadian beverage maintained category leadership, with national brands outperforming the market, though private label volumes softened due to customer strategy changes and portfolio optimization.

• Specialty food segment saw solid gains, especially in premium pasta sauces and barbecue sauces, with successful brand refreshes and expanded distribution.

• Diversified portfolio and solid execution of business strategy contributed to resilience across segments.

Financial highlights

• Q2 2026 sales were $737.7 million (CAD 738 million), down 0.6% year-over-year; excluding FX, sales decreased 0.5% due to lower private label volumes and portfolio rationalization.

• Gross profit rose to $227.6 million (CAD 228 million), up 16% or $31.8 million year-over-year, driven by lower orange concentrate costs, favorable pricing, and improved mix.

• Adjusted EBITDA increased 19% to $100.7 million (13.7% of sales), up from $84 million (11.4% of sales) last year.

• Adjusted EPS was $7.45, up 36% year-over-year; reported EPS was $3.95, down 21.6% due to impairment charges.

• SG&A expenses increased to $157 million from $141 million, mainly due to higher transportation and compensation costs.

Outlook and guidance

• 2026 sales expected to be slightly below 2025, reflecting category softness, portfolio optimization, and customer strategy changes.

• Focus remains on profitable sales, innovation, and operational readiness for the new New Jersey facility.

• Commodity costs for orange and apple concentrate expected to be lower, but transportation and PET resin costs face inflationary pressures.

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

• Effective tax rate for 2026 estimated at 23.5%.