Lassonde Industries (LAS-A) Q2 2025 earnings summary

Executive summary

• Achieved Q2 2025 sales growth of 18.9% to $742.4M, with organic growth above 10% excluding FX and Summer Garden acquisition, and market share gains in Canada and the U.S.

• Strong performance in Food Service and Specialty Food, with Summer Garden contributing $49.9M in sales and 21% EBITDA margin.

• Integration of Summer Garden continues to drive operational efficiencies and brand expansion.

• Strategic investments in U.S. production capacity, including North Carolina and New Jersey, are progressing on schedule and budget.

• Canadian Beverages delivered resilient results and market share gains despite market contraction, supported by innovation and pricing strategies.

Financial highlights

• Q2 2025 sales reached $742.4M, up 18.9% year-over-year; organic sales up 10.1% excluding FX and Summer Garden.

• Gross profit was $195.7M (26.4% margin), up 11.4% from last year; margin impacted by higher input costs.

• Adjusted EBITDA rose 13.1% to $84.4M (11.4% of sales); adjusted profit attributable to shareholders was $37.2M ($5.47/share), down from $39M ($5.73/share) last year.

• Net debt increased to $618.1M, with a net debt to adjusted EBITDA ratio of 2.03:1.

• Operating activities used $3.1M in Q2, compared to $59M generated last year, mainly due to higher working capital needs.

Outlook and guidance

• Full-year 2025 sales growth expected slightly above 10% (excluding FX), reflecting Summer Garden's full-year contribution and volume gains.

• Anticipates sequential U.S. sales volume improvement, supported by new production lines and distribution gains.

• Expects ongoing cost volatility for orange, apple, and pineapple concentrates, with FX fluctuations and tariff risks.

• Capital expenditures for 2025 projected up to 7% of sales, with US$65M allocated for New Jersey facility.

• Net debt to adjusted EBITDA ratio expected between 2.0x and 2.5x through 2026 due to U.S. CAPEX program.