Rogers Sugar (RSI) investor relations material

Executive summary

• Adjusted net earnings for Q3 were CAD 16.3 million ($0.13 per share), slightly below last year, with consolidated adjusted EBITDA at $36 million, driven by strong sugar segment performance despite a challenging environment.

• Sugar sales volume declined by 2% year-over-year to 187,900 metric tonnes, mainly due to lower liquid segment volume, while industrial and export volumes showed modest recovery.

• Maple segment performance was stable year-over-year but below expectations due to softened global demand and increased competition, with Q3 adjusted EBITDA at approximately $4 million.

• Two major long-term labor agreements were secured at Montréal and Taber, providing workforce stability through 2031 and 2032.

• The LEAP Project is on schedule and within budget, with $207 million invested to date and incremental capacity expected online in early 2027.

Financial highlights

• Q3 2026 revenues were $293.7 million, down 8% year-over-year, mainly due to lower raw sugar prices and volumes.

• Adjusted EBITDA for Q3 was $36 million, up 3% year-over-year, and for the first nine months, $121 million, up $10 million year-over-year.

• Adjusted net earnings per share were $0.13, flat year-over-year.

• Free cash flow for the trailing 12 months was $90 million, a slight increase year-over-year.

• Quarterly dividend of $0.09 per share declared, continuing an uninterrupted 16-year streak.

Outlook and guidance

• Full-year sugar volume forecast raised to 745,000 metric tonnes, reflecting moderate recovery in industrial and export demand, but still below fiscal 2025 levels.

• Montreal refinery expected to operate at full capacity; Western facilities leveraged to meet commitments.

• Maple segment results anticipated to be lower than fiscal 2025 due to reduced global demand and margin pressure.

• Production and maintenance costs expected to rise modestly due to market-based increases and wage adjustments.

• Focus remains on cost management, margin protection, and operational efficiency.