Lassonde Industries (LAS-A) investor relations material

Executive summary

• Gross profit and adjusted EPS grew despite lower sales, softer category volumes, freight inflation and temporary U.S. production disruptions.

• Brand strength, disciplined pricing and favorable mix supported results, while supply constraints limited U.S. growth opportunities.

Financial highlights

• Q3 sales were CAD 713.3M versus CAD 723.9M; excluding FX, sales declined 2.3%. Volume reduced sales by CAD 24.8M, partly offset by CAD 11.0M from mix.

• Gross profit rose to CAD 205.5M from CAD 197.6M; excluding favorable FX, it increased CAD 5.4M, or 3%, supported by lower orange and apple costs and favorable mix.

• Operating profit was CAD 56.8M versus CAD 57.9M; SG&A increased CAD 9M year over year to CAD 149M, mainly from transportation, selling, marketing and administrative costs.

• Adjusted EBITDA was CAD 83.6M, or 11.7% of sales, versus CAD 86.4M and 11.9%; adjusted EPS rose to CAD 5.94 from CAD 5.84.

• Profit attributable to shareholders was CAD 37.7M versus CAD 36.8M; EPS was CAD 5.52 versus CAD 5.40.

Outlook and guidance

• FY2026 sales are expected to be slightly below FY2025, excluding FX; consumer demand and volumes are expected to remain pressured.

• 2027 sales will reflect contractual changes with a Specialty Food customer; ~70% of replacement volume is secured, but replacing volume on historical terms remains uncertain.

• Higher crude oil prices are expected to pressure transportation and PET resin costs, partly offset by favorable commodity costs; U.S. Beverage conversion costs may remain elevated through early 2027.

• FY2026 capital spending is projected at up to 7% of sales, including US$87M for New Jersey; 2027 spending is expected above historical levels but below 2026 as a share of sales.

• New Jersey transfer start-up costs will be excluded from adjusted EBITDA and adjusted EPS as comparability items.